India’s Central Board of Direct Taxes (CBDT) entered into three new unilateral advance pricing agreements (APAs) in the months of May and June 2018, the tax authority revealed.
The APAs pertain to consumer industry, automobile, and precious stones and metals sectors of the economy. The international transactions covered in the APAs pertain to provision of corporate guarantee, purchase of brand, availing of grading services, availing of management services, and payment of royalty.
With the signing of these APAs, the total number of APAs entered into by the CBDT has gone up to 223, which include 20 bilateral APAs.
The APA provisions were introduced in the Income Tax Act in 2012, and “rollback” provisions were added in 2014.