CBDT releases the fifth annual Advanced Pricing Agreement (APA) report. APA is one of the foremost initiatives for promoting an investor-friendly and non-adversarial tax regime in India. Here are some highlights:
- In FY 2022-23, CBDT recorded the highest-ever APA signings in any FY since the launch of the APA programme, signing a total of 95 APAs. C
- BDT also signed maximum number of 32 Bilateral Advance Pricing Agreements (BAPAs) in a single FY in FY 2022-23 which is more than double the previous signing record of 13.
- Largest number of single day signings with a total of 21 APAs signed, recorded on 24th March, 2023.
Refer Press Release Below:
The BAPAs were signed as a consequence of entering into mutual agreements with India’s treaty partners– Finland, the UK, the US, Denmark, Singapore, and Japan.
The Income Tax department has signed 95 advance pricing agreements (APA) in 2022-23 — the highest ever in any financial year since its launch in 2012.
“In FY 2022-23, CBDT recorded the highest ever APA signings in any financial year since the launch of the APA programme, signing a total of 95 APAs,” the income tax department said in a statement.
The APA programme of CBDT is one of its foremost initiatives for promoting an investor-friendly and non-adversarial tax regime in India. Since its commencement in July 2012, the Indian APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, it added.
The Central Board of Direct Taxes (CBDT), which is the apex decision-making body in direct taxes, also signed 32 Bilateral Advance Pricing Agreements (BAPAs) in 2022-23 being the maximum number of BAPAs in any financial year till date.
The BAPAs were signed as a consequence of entering into mutual agreements with India’s treaty partners– Finland, the UK, the US, Denmark, Singapore, and Japan.
Bilateral APAs help reduce the transfer pricing disputes that arise in respect of international transactions between related companies located in the two countries. Also, they would lend certainty to international transactions between related companies of the two countries.
