1272 06-May-2018, Sun
The Central Board of Direct Taxes (CBDT) recently achieved another milestone of having signed its 200thUnilateral Advance Pricing Agreement (UAPA).
The total number of APAs entered into by CBDT has gone up to 220, which, inter alia include 20 Bilateral APAs.
About the APA scheme:
- The APA scheme was introduced in the Income-tax Act in 2012 and the “rollback” provisions were introduced in 2014.
- The scheme endeavors to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the prices of international transactions in advance.
- Since its inception, the APA scheme has evinced a lot of interest from taxpayers and that has resulted in more than 700 applications (both unilateral and bilateral) being filed so far in about five years.
- The progress of the APA Scheme strengthens the government’s resolve of fostering a non-adversarial tax regime.
- The Indian APA program has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.
- The Central Board of Direct Taxes is a statutory authority functioning under the Central Board of Revenue Act, 1963.
- It is a part of the Department of Revenue in the Ministry of Finance, Government of India.
- It provides essential inputs for policy and planning of direct taxes in India and is also responsible for administration of the direct tax laws through Income Tax Department.
- It is also India’s official Financial Action Task Force unit.
- The CBDT Chairman and Members of CBDT are selected from Indian Revenue Service (IRS) whose members constitute the top management of Income Tax Department.