Indian tax authority has signed a record number of bilateral advance pricing agreement (APAs) in the 2022-23 financial year.
According to the latest APA report, the tax authority signed the highest number of APAs in the 2022-23 financial year since the launch of the APA program.
During the period, a total of 193 APA applications were filed, out of which 77 were bilateral APA applications.
More than half of bilateral APA applications are with the US. Other treaty partners with whom large number of applications have been filed in the 2022-23 financial year are Japan, Finland, South Korea, and the UK.
Out of a total 449 applications filed by March 31, 2023, 140 applications have been disposed of, and 309 applications are under process. 47 APAs have “rollback” provisions.
The average time taken to conclude bilateral APAs has come down to approximately 62.1 months in the 2022-23 financial year.
The APA program was launched in 2012 vide the Finance Act, 2012.