CBDT inks two new Advance Pricing Agreements in electronics - technology
New Delhi, Dec 1 (KNN) The Central Board of Direct Taxes (CBDT) has signed 2 more Advance Pricing Agreements (APAs) in the month of November making the total number of APAs to 186, an official release from Ministry of Finance informed.
These Agreements are the first ever Bilateral APAs with Netherlands. The newly signed APAs are in the electronics and technology sectors.
The international transactions covered in these agreements include Distribution, Provision of Marketing Support Services, Provision of Business Support Services, etc.
The APA provisions were introduced in 2012 under the Income-tax Act. This was followed by the “Rollback” provisions of 2014.
The APA scheme aims 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. (With PIB Inputs) (KNN/ DA)