Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: cpt :: due date for vat payment :: articles on VAT and GST in India :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: VAT Audit
Transfer Pricing »
 US, Mexico agree to transfer pricing framework for maquiladoras
 Indian tax official sees expanded role for BEPS inclusive framework, addresses transfer pricing local file
  Transfer Pricing analysis of professional services provided by related-party individuals and corporations
 Transfer Pricing analysis of professional services provided by related-party individuals and corporations
 FinMin to issue rules for norms under BEPS
  CBDT signs five unilateral advance pricing agreements
 UN tax committee to consider major updates to transfer pricing manual, model tax treaty
 CRA intensifies scrutiny of complex transfer pricing tax avoidance scheme
 New transfer pricing requirements in Poland
 Additional Tax Assessment Following Transfer Pricing Control Audit
 Aligning customs with transfer pricing operations

India signs bilateral advance pricing agreement with Japan
December, 30th 2014

In a step to reduce transfer pricing disputes, the Indian tax department on Friday signed its first bilateral advance pricing agreement (APA) with Japan.

The APA was signed with a Japanese company, the central board of direct taxes said in a statement, adding that APAs will improve the investment climate in the country and attract more Japanese investors to India.

An advance pricing agreement is an accord between a taxpayer and the tax department on a transfer pricing procedure for a particular set of transactions.

An APA could be a unilateral agreement between the company and Indian tax authorities or a bilateral agreement involving a foreign country or a multilateral agreement between several nations. But bilateral or multilateral agreements with other countries will be based on tax treaties that India has with them.

So under a bilateral agreement, agreements have to be signed at various levels—between the tax authorities of both the countries and between the tax authorities and the respective company.

Advance pricing agreement rules were notified in August 2012 as the Indian tax authorities sought to reduce long-drawn litigation in transfer-pricing and provide some certainty to multinational companies operating in India.

Transfer pricing is the practice of arm’s length pricing for transactions between group companies based in different countries to ensure that a fair price—one that would have been charged to an unrelated party—is levied.

Transfer pricing has been an area of increasing dispute in India with the most recent assessment of such pricing by the tax department seeing increased claims of more than $9.5 billion.

S.P. Singh, senior director with Deloitte Haskins & Sells LLP said bilateral APAs can reduce double taxation and protracted litigation and provide certainty. “Unless and until the whole process of transfer pricing audit is substantially changed there will be unjustified additions and litigation. The government must encourage APAs and at the same time must attend to the root cause of undesired litigation.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions