India’s Central Board of Direct Taxes (CBDT) entered into nine new unilateral advance pricing agreements (APAs) in July 2018, the tax authority has announced.
The APAs pertain to manufacturing, engineering, media, irrigation, education, healthcare, telecommunications, industrial gases, and pharmaceuticals. The APAs cover international transactions such as software development service, manufacturing and sale of engineering good, import of raw materials, payment of royalty, among others.
With the signing of these APAs, the total number of APAs entered into by the CBDT has gone up to 232, which includes 20 bilateral APAs.
The APA provisions were introduced in the Income Tax Act in 2012, and “rollback” provisions were added in 2014.