New Delhi, The Central Board of Direct Taxes (CBDT) has entered into a record 125 advance pricing agreements (APAs) with Indian taxpayers in 2023-24.
This includes 86 unilateral APAs (UAPAs) and 39 bilateral APAs (BAPAs), the Finance Ministry said in a statement on Tuesday.
It said this is the highest ever APA signatures in any financial year since the inception of the APA program.
The number of APAs signed in 2023-24 also shows an increase of 31 per cent compared to 95 APAs signed during the previous financial year.
With this, the total number of APAs since the inception of the APA program has reached 641, which includes 506 UAPAs and 135 BAPAs.
During 2023-24, CBDT signed the highest number of BAPAs in any financial year so far, it said, adding that BAPAs were signed through mutual agreements with India's treaty partners namely Australia, Canada, Denmark, Japan, Singapore. were made as a result. UK and US.
The APA scheme seeks to provide certainty to taxpayers in the area of transfer pricing by specifying pricing methods and determining the arm's length price of international transactions for a maximum of five future years in advance.
Additionally, the taxpayer has the option to rollback the APA for four preceding years, resulting in tax certainty being provided for nine years.
Signing a bilateral APA protects taxpayers from any anticipated or actual double taxation.
It said the APA program has contributed significantly to the Government of India's mission of promoting ease of doing business, especially for multinational enterprises that have a large number of cross-border transactions within their group entities.
This includes 86 unilateral APAs (UAPAs) and 39 bilateral APAs (BAPAs), the Finance Ministry said in a statement on Tuesday.
It said this is the highest ever APA signatures in any financial year since the inception of the APA program.
The number of APAs signed in 2023-24 also shows an increase of 31 per cent compared to 95 APAs signed during the previous financial year.
With this, the total number of APAs since the inception of the APA program has reached 641, which includes 506 UAPAs and 135 BAPAs.
During 2023-24, CBDT signed the highest number of BAPAs in any financial year so far, it said, adding that BAPAs were signed through mutual agreements with India's treaty partners namely Australia, Canada, Denmark, Japan, Singapore. were made as a result. UK and US.
The APA scheme seeks to provide certainty to taxpayers in the area of transfer pricing by specifying pricing methods and determining the arm's length price of international transactions for a maximum of five future years in advance.
Additionally, the taxpayer has the option to rollback the APA for four preceding years, resulting in tax certainty being provided for nine years.
Signing a bilateral APA protects taxpayers from any anticipated or actual double taxation.
It said the APA program has contributed significantly to the Government of India's mission of promoting ease of doing business, especially for multinational enterprises that have a large number of cross-border transactions within their group entities.
