India: Update on APAs | KPMG | BE

India: Update on APAs

India: Update on APAs

Transfer pricing issues have been attracting the attention of the Indian Revenue authorities, and especially with respect to issues involving multinational enterprises (MNEs) operating within India. With a view to make India an “investor friendly” jurisdiction, the Government of India has made conscious efforts to reduce litigation and foster an environment of tax cooperation and certainty.

1000

Related content

Accordingly, in line with the government’s efforts, the advance pricing agreement (APA) programme was introduced in 2012. The APA programme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance. 

Since the APA programme’s inception, there have been over 700 applications—both for unilateral and bilateral APAs—filed over a four-year period. 

To date, over 120 APAs have been entered into—reflecting a rapid pace at which the tax authorities have been concluding APAs. The tax authorities anticipate more APAs to be concluded and signed in the near future.

To participate in a survey to measure taxpayer experiences and expectations on various parameters of the APA regime in India, click here [PDF 497 KB]

© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us

 

Request for proposal

 

Submit