Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT RATES :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARDS :: form 3cd :: empanelment :: TDS :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
« General »
 India’s GST among most complex in world, and it is 0% tax rate that is hurting the idea
 Can’t overrule courts with retrospective amendments, says Supreme Court
 Why tax planning should be an all-year round activity
 8 financial tasks you should do in the next 30 days
 Income Tax department may defend CPC in returns fraud case
  Income tax department sends notices to investors over tax treaty gains
 Seven months after GST rollout: Time for handholding over, Centre to intensify efforts to curb tax evasion
 Individual angels may get tax relief too
 The differences between tax and cess
 Startups that raised funds from angel investors face tax scrutiny
 Tax collection assumptions in India's budget ambitious

Multinational companies rush to seal tax pacts in advance
March, 31st 2014

Multinational companies have rushed to hammer out agreements that lock in their tax liabilities in India for the next five years through the Advance Pricing Agreement programme, putting behind their outrage over what's been perceived as the government's aggressive tax practices.

More than 240 companies have signed up for APAs for the next fiscal even before the first one is signed on Monday in a bid to avoid being saddled with demands that inevitably lead to long-drawn disputes.

"Response from companies in the second year also has been very encouraging... We have got about 240 applications," an income-tax official familiar with the development told ET.

An Advance Pricing Agreement, or APA, is essentially a negotiated deal between a taxpayer and the tax authorities that sets out beforehand the method for determining the transfer pricing pertaining to transactions between a subsidiary and its foreign parent. This relates to the pricing of assets, tangible and intangible, services, and funds that are transferred within an organisation in a cross- border transaction.

Multinational companies rush to seal tax pacts in advance Such transactions have been the source of much dispute in recent years, with tax authorities questioning and imposing taxes on big MNCs such as Vodafone and Nokia.

APA applications have originated from a wide range of sectors including IT and IT-enabled services (ITeS), financial services, pharmaceuticals and chemicals and deal with issues such as royalties, corporate guarantees, outsourcing and interest income.

In 2013-14, the first year of the APA rollout, 146 applications were filed. Tax authorities will sign five-six deals from the first lot of applications on Monday, an event being keenly followed by foreign investors.

The scheme, launched in the budget for 2012-13, is aimed at providing certainty to foreign taxpayers. The agreement will shield a company from future questions from tax authorities, litigation and compliance burden for a period of five years once an agreement is reached.

The programme has been watched very carefully the world over after India's increased aggression on tax issues attracted wide condemnation.

High-profile cases involving Shell and Microsoft saw thousands of crores in transfer pricing adjustments being disputed with a number of these cases landing up in court. India was said to be the third most-litigious country in respect of transfer pricing in a Grant Thornton report.

Tax experts said India's quick response on APA proposals has been commendable.

"India's APA programme has done better than many countries as we have been very swift in handling applications," said Vijay Iyer, partner and national leader, transfer pricing, EY.

The new government that takes over after the election should support the programme to boost foreign investment, said Sabine Wahl, director, PwC.

"The programme has been handled very professionally. APA authorities have clearly shown that it's a collaborative relationship between taxpayers and tax authorities, added " said Wahl.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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