The first annual report of the advance pricing agreement (APA) programme in India has been released by the Central Board of Direct Taxes, Ministry of Finance. The APA report provides insights into the progress of APA programme in India, as introduced in 2012.
The APA programme in India was launched in July 2012 with the objective of providing certainty to taxpayers in respect of the transfer prices of cross-border transactions undertaken by taxpayers with their group entities. This programme, now almost five years old, has offered an alternate dispute resolution mechanism to taxpayers in respect of transfer pricing issues.
The APA report reveals the following statistics:
The United States opened its bilateral APA programme with India in February 2016, and since then, there has an increase in the number of bilateral APA applications and in the number of conversions from unilateral APAs applications to bilateral APA applications.
Read a May 2017 report [PDF 287 KB] prepared by the KPMG member firm in India
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.