Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

New Delhi, 2nd November, 2017.

PRESS RELEASE

Indian Advance Pricing Agreement regime moves forward with signing of seven APAs by CBDT in October, 2017

The Central Board of Direct Taxes (CBDT) has entered into 7 more Advance Pricing Agreements (APAs) during the month of October, 2017. All these Agreements are Unilateral.

With the signing of these seven Agreements, the total number of APAs entered into by the CBDT has gone up to 184. This includes 171 Unilateral APAs and 13 Bilateral APAs. In the current financial year, a total of 32 APAs (2 Bilateral and 30 Unilateral) have been signed till date.

The 7 APAs entered into during October, 2017 pertain to various sectors of the economy like FMCG, Semi-conductor, Information Technology, Travel & Leisure, Office furniture and Engineering. The international transactions covered in these agreements include Provision of IT Enabled Services, Provision of Software Development Services, Provision of Marketing Support Services, Provision of Engineering Design Services, Payment of Interest, Trading, Import of Components, etc.

The progress of the APA scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime. The Indian APA programme has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.

(Surabhi Ahluwalia)

Commissioner of Income Tax

(Media & Technical Policy)

Official Spokesperson, CBDT.

Advance Pricing Agreements bolster a non adversarial transfer pricing framework by pre agreeing pricing methods for related party transactions. The Central Board of Direct Taxes signed seven unilateral Advance Pricing Agreements in October 2017, bringing the total to 184 APAs (171 unilateral, 13 bilateral) and contributing to 32 APAs executed in the financial year to date. The agreements cover multiple sectors and a range of international related party transactions-such as IT enabled services, software development, marketing support, engineering design services, payment of interest, trading and import of components-and are presented as strengthening a non adversarial transfer pricing framework by pre agreeing pricing methods.