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: cpt :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS
 
 
Direct Tax »
 Income tax officers should not threaten taxpayers: CBDT
 Non-payment of TDS by mumbai companies: Showcause notices to over 300 firms
 In some instances, filing of income tax return may not be mandatory
 Best 5 Income Tax-Saving SIP plans in India: How To save taxes by Investing in SIPs under 80C
 Tax refund checks are finally in the mail
 Income Tax dues in advance can be paid at RBI or at authorised bank branches by March 2017
 Why you must be looking beyond tax planning
 I-T dept. to lauch app for paying tax
 CBDT to taxman: Step up TDS survey operations to boost collections
 Tax Officers Asked To File Self-Appraisal Report On E-Assessment
 CBDT to taxman: Step up TDS survey ops to boost collections

CBDT, BNP Paribas sign taxation rate agreement, eight more APAs with IT companies on the anvil
July, 04th 2015

The Central Board of Direct Taxes has signed a taxation rate agreement with BNP Paribas India Solutions, the local arm of the European bank, as part of efforts to reduce disputes with foreign companies over tax-related issues.

BNP Paribas Solutions is the first company in the information technology and information technology-enabled services sector to sign an APA. Industry officials said eight more such agreements could be signed by IT/ITeS companies by August end.

According to the unilateral advance pricing agreement signed between the company and the government, tax will be levied at 16-18%, people familiar with the matter said. "This tax rate is much lower than the earlier rates that the government has agreed upon with other firms," a tax official said. "This could become a benchmark rate that could be considered in dealing with other firms in the sector."

The finance ministry has asked CBDT to resolve transfer pricing disputes at a faster pace to help clear the perception that India is overly aggressive on taxation. Transfer pricing refers to the practice of maintaining arm's length in transactions between related entities such as a company and its overseas subsidiaries.

In response to ET's query, CBDT said, "Name of person (company) with whom the APA is signed is confidential information under the Income Tax Act."

"CBDT has given special emphasis to provide tax certainty through advance pricing agreement and has strengthened the APA team by increasing manpower. All efforts are being made to sign as many cases as possible in the near future," the board said in the statement. An email sent to Mumbai-based BNP Paribas India solutions remained unanswered.

Of 550 APA applications pending with the government, about 35% are from the IT/ITeS sector. ET had reported on May 21 that the first agreement in the IT/ITeS space would be signed in three months.

Transfer pricing disputes in this sector are mainly related to outsourcing and the calculation of profit made by companies. Many firms have gone to court challenging the government's transfer pricing adjustments. In July 2012, the government introduced the APA programme, which allows companies and the revenue authorities to negotiate the rate at which tax is to be paid and avoid disputes. Industry officials say the Modi government is pushing tax authorities to resolve about 120 transfer pricing disputes by the end of the financial year.

"That is too much to expect, but I think the revenue authorities would sign anywhere around 70-80 APAs, mainly in the IT/ITeS space," said a tax consultant.

APAs can be unilateral, bilateral or multilateral. A unilateral APA is signed with a company from a country with which India does not have a tax treaty and involves only the taxpayer and the revenue authority. Bilateral APAs involve the taxpayer, its local subsidiary, the Indian tax authority and the country in which the company is headquartered. Multilateral APAs involve the taxpayer, two or more of its subsidiaries in different foreign countries, the Indian tax authority and the country where the company is headquartered.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

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