The Central Board of Direct Taxes (CBDT) has entered into one Unilateral Advance Pricing Agreement (UAPA) during the month of April, 2018. With the signing of this Agreement, the CBDT has achieved another milestone of having signed its 200^th UAPA. The total number of APAs entered into by CBDT has gone up to 220, which, inter alia include 20 Bilateral APAs. The UAPA signed in this month also happens to be the first APA in the current financial year.

The UAPA entered into during April, 2018 pertains to provision of sourcing support services.

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.

Advance Pricing Agreement expansion reinforces non adversarial transfer pricing framework and addresses complex cross-border sourcing support arrangements. The CBDT executed a Unilateral Advance Pricing Agreement in April 2018 concerning sourcing support services, recorded as the 200th UAPA and part of a total of 220 APAs including 20 bilateral agreements; it was the first APA of the financial year and forms part of the Indian APA framework to pre determine transfer pricing for cross border related party transactions, thereby reducing disputes.