Advance Pricing Agreements set transfer pricing method and arm's length outcome to manage cross border tax adjustments. Applicants may select a Unilateral, Bilateral or Multilateral Advance Pricing Agreement. Unilateral APAs are bilateral arrangements solely with the Indian tax authority and do not bind treaty partners, potentially leaving scope for economic double taxation. Bilateral APAs require concurrent applications and MAP negotiation between India and the other jurisdiction, with the applicant's acceptance of the resulting arrangement before execution. Multilateral APAs extend MAP negotiation to multiple treaty partners and likewise require applicant acceptance. Bilateral or multilateral APAs are considered only where a tax treaty with a MAP article exists, comparable transfer pricing adjustment provisions are present, and the other jurisdiction operates a corresponding APA program.