Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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 :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: VAT Audit :: 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 :: due date for vat payment :: list of goods taxed at 4% :: TDS :: form 3cd :: cpt :: VAT RATES :: ACCOUNTING STANDARDS
 
 
Direct Tax »
 CBDT clarification on Ind-AS makes tax calculation harder for companies
 I-T department to share companies' tax info with corporate ministry
 CBDT comes out with clarification on MAT for Ind AS companies
 No penalty for late ITR this year but here are 4 important reasons to file it in time
 12% growth in income tax collection
 CBDT gameplan to enhance TDS collection
 Don't curry political favours for transfers, CBDT tells taxmen
 CBDT: GST not to be added for TDS computation
 Five interest incomes you are likely to forget to include in your tax return
 GST not to be added for TDS computation
 GST not to be added for TDS computation

CBDT signs 11 more advance pricing deals
March, 30th 2016

The Central Board of Direct Taxes (CBDT) has signed 11 more unilateral advance pricing agreements (APAs), taking the overall number to 59. They includes three bilateral APAs — one with Japan and two with the UK (signed in February).

An APA is an agreement between a corporate taxpayer and the tax authority on its transfer pricing methodology and the tax rate applicable on inter-company transactions.

It usually runs for a few years and helps avoid disputes with the tax authorities over transfer pricing.

The latest round of 11 APAs cover a range of transactions, including ITeS, corporate guarantee, software development services, overseas distribution of goods manufactured by Indian companies and royalty payments.

Providing clarity
What is noteworthy is that the CBDT has concluded 50 APAs in 2015-16, living up to its promise on this front and also reflecting the tax administration’s keenness to avoid transfer pricing disputes.

The APA scheme, which was introduced in 2012, tries to provide certainty to taxpayers in transfer pricing by specifying the method of pricing and setting the prices of international transactions in advance.

The scheme provides certainty in transfer pricing up to a period of nine years and helps reduce tax disputes.

Amit Agarwal, Partner, Nangia & Co, a CA firm, said that the signing of 11 more APAs shows that the government is not only open but is also actually taking steps to reduce litigation and provide certainty to the taxpayers.

Quick resolution
APAs have proved to be a successful route for dispute resolution unlike the ‘Safe Harbour’ initiative, which was introduced with a similar intent, but never practically saw the light of the day, Agarwal added.

Vijay Iyer, Partner and National Leader, Transfer Pricing, EY, said that the last few months have seen frenetic activity on the part of tax authorities towards concluding APAs. Going by this trend, one would not be surprised if the 100 mark is achieved in 2016-17, he noted.

Iyer also suggested that India should look at providing a ‘fast track’ APA mechanism for providing clarity to people who want to invest in the country.

The fast track mechanism should strive to provide results in a span of 3-6 months against the current average time span of 18 months, which is no doubt commendable and in line with global practices, Iyer added.

Amit Maheshwari, Partner, Ashok Maheshwary & Associates, a CA firm, said that concluding 50 APAs in a fiscal year is a remarkable achievement. “If the government can bring down safe harbour margins to realistic levels in line with ground realities, then some companies may not need APAs,” he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Outsourcing Company Offshore Software Outsourcing Software Outsourcing Company India Offshore Outsourcing Company India Software BPO Software Business Process Outsourcing Software Outsourcing India Offsho

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