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
Latest Expert Exchange
« Mergers and Acquisitions »
 How investor confidence, other factors are leading the Indian deals landscape
 M&A deals steady in Indian auto sector
 CCI launches online guidance system for merger & acquisitions
  Deals Of The Day-Mergers And Acquisitions July 16, 2018
  Deals Of The Day-Mergers And Acquisitions July 16, 2018
 Deals Of The Day-Mergers And Acquisitions July 16, 2018
 Deals Of The Day-Mergers And Acquisitions July 13, 2018
 Deals Of The Day-Mergers And Acquisitions July 11, 2018
 Deals Of The Day-Mergers And Acquisitions July 5, 2018
 CCI launches online guidance system for merger and acquisitions
 Vodafone-Idea merger: No delay from government’s side, says Manoj Sinha

Government signs 5 more advance pricing agreements with MNCs
March, 28th 2016

The government has signed five more advance pricing agreements with multinational firms. Of these, three are new agreements while two were renewals, according to consulting firm EY, which was involved in three of the deals.

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

“The three firms were from information technology enabled services and pharmaceuticals,” according to Vijay Iyer, partner and national leader, transfer pricing, EY. He refused to disclose the name of the firms.

India had introduced the APA regime in 2013-14, which is gaining traction.

“A non-adversarial tax regime is kicking in. The Central Board of Direct Taxes signed five more APAs on Wednesday to take the count of total filings to 48. The momentum of APA closures has picked up now and few APAs are getting signed every month. This is a message to tax payers that CBDT is fully committed to the non-adversarial approach to tax administration,” Iyer said.

CBDT had recently issued new instructions on transfer pricing, in a bid to ease the tax regime for MNCs operating in India.

“It (CBDT guideline) attempts to restrict the audit of taxpayers to high risk cases where the quantum of adjustments in the past year has been at least Rs 10 crore. Quite a few honest taxpayers may be spared the pain of transfer pricing (TP) audits, indicating the government’s taxpayer-friendly approach. The CBDT has consciously chosen to let go of taxpayers who have honestly reported transactions and where the quantum of past TP adjustments is less than Rs 10 crore,” Mr Iyer added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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