Latest Expert Exchange Queries

Make 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) | 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: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: due date for vat payment :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: cpt :: list of goods taxed at 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: ACCOUNTING STANDARD
« Transfer Pricing »
 BMR Advisors’ corporate tax practice deal goes down to the wire
 Over 300 Income Tax commissioners transferred across country
 GST won't apply to transfer of immovable property
 Outlining the transfer pricing law in Thailand
 OECD releases 42 comments on transfer pricing guidance for hard-to-value intangibles
 Transfer pricing toolkit for developing nations’ tax systems
 Transfer Pricing adjustment for excessive marketing expenses taking a twist in India
 Indian secondary adjustments for transfer pricing: what you need to know about the new rules
 Interpretation Of Central Goods And Services Tax (CGST) Act (Part-10)
 CBDT notifies secondary adjustment rule in transfer pricing
  Revised Transfer Pricing Safe Harbour Rules Bring Cheer

India Issues First Comprehensive Report on Advance Pricing Accords
May, 11th 2017

India has signed six bilateral advance pricing agreements with the U.K. and five with Japan since 2012, when the country began offering the agreements that allow companies to avoid a transfer pricing audit in one or more countries, the government said in its first annual APA report.

“Financial Year 2016-17 has seen a significant jump in the number of bilateral APAs signed with Indian taxpayers after conclusion of Mutual Agreements with the Competent Authority of the other country,” India’s Central Board of Direct Taxes said in the report, released May 1. Mutual agreements refer to the mechanism for resolving cross-border tax disputes, while APAs seek to avoid those disputes in the first place by enabling a company and one or more taxing authorities to agree on a transfer pricing method and application for a period of several years. Agreements in India cover five years and can include a “rollback” provision to cover past years.

The CBDT said the first bilateral APA between India and the U.S. was resolved in the 2016-17 financial year, “but the same could not be concluded by 31st March, 2017 due to some technical issues” so isn’t reflected in the report’s statistics.

Also available on Bloomberg BNA Tax & Accounting
Built on the foundation of the Tax Management Portfolios™, Bloomberg BNA Tax & Accounting is a comprehensive tax research solution designed by tax practitioners for tax practitioners. An easy-to-use interface and improved search deliver the fastest and easiest access to the expert analysis, in-depth news, extensive primary source material, and full range of practitioner-developed tools only available from Bloomberg BNA.

In addition to the bilateral APAs, the CBDT concluded 141 unilateral agreements, for a grand total of 152 completed agreements. Eighty-eight of those were completed in the 2016-17 year, the report said.

Bilateral Inventory

Over the last five years, more than 800 APA applications have been filed in India, comprising both unilateral and bilateral applications, the CBDT said. “The majority of these applications—about 85%—are for unilateral APAs between the Indian taxpayer and the CBDT,” the report said. Companies filed:

?29 applications for bilateral APAs in the 2012-13 financial year;
?26 applications in the 2013-14 year;
?14 applications in 2014-15;
?19 applications in 2015-16; and
?21 applications in 2016-17.
India’s average time for concluding the agreements compares favorably with the average for other countries, the report said.
“It is indeed praiseworthy that India has managed to conclude bilateral APAs in 39 months on an average,” the CBDT said, adding that this is better than what many countries have managed to achieve in their APA programs: “For example, the bilateral APAs concluded by USA in 2016 have taken 51 months on an average.”

Unilateral Agreements

India has signed 141 unilateral APAs as of March 31, the CBDT said.

The figures clearly show an overwhelming preference for unilateral APA applications, the report added. “The primary reason for this is obvious. As the U.S. Competent Authority was not admitting bilateral APA applications into its APA programme, Indian subsidiaries of U.S.-based companies—who are present in large numbers in India—were forced to seek certainty on their international transactions through unilateral APAs.”

The U.S. Competent Authority opened up the bilateral APA program between the two countries in February 2016. Since that time, there has been an increase in the number of bilateral applications and also in the number of conversions of applications from unilateral to bilateral, the CBDT said.

The CBDT said companies filed:

?117 applications for unilateral APAs in 2012-13;
?206 applications in 2013-14;
?192 applications in 2014-15;
?113 applications in 2015-16; and
?78 applications in 2016-17.
Global Reach

As for the completed agreements, the CBDT said the 141 Indian APAs entered into so far have left their footprints on 118 countries where the associated enterprises of the Indian applicant company are located.

“This is as widespread as one could possibly imagine and also reflects the truly global reach of multinational enterprises.”

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Privacy Policy

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