CBDT enters into 18 Advance Pricing Agreements in March 2019, includes 3 BAPAs

With the signing of these APAs, the total number of APAs entered into by the CBDT in the year 2018-19 stands at 52, which includes 11 BAPAs.

The Central Board of Direct Taxes (CBDT) has entered into 18 APAs in the month of March 2019, which includes 03 Bilateral APAs (BAPAs). With the signing of these APAs, the total number of APAs entered into by the CBDT in the year 2018-19 stands at 52, which includes 11 BAPAs. The total number of APAs entered into by the CBDT as of now stands at 271, which inter alia includes 31 BAPAs.

The BAPAs entered into during the month of March 2019 were with the following treaty partners:-

Australia – 1

Netherlands - 1

USA – 1

The BAPAs and Unilateral APAs (UAPAs) entered into during the month of March 2019 pertain to various sectors and sub-sectors of the economy like anti-friction bearings, risk management solutions platforms, BPO, IT/ITeS, ATMs, industrial and institutional cleaning and hygiene products, etc.

The International Transactions covered in all these Agreements, inter alia, include the following, -

contract manufacturing

provision of software development services

back office engineering support service

provision of back office (ITeS) support services

provision of marketing support services

payment of royalty for the use of technology and brand

trading

payment of interest

The progress of the APA scheme strengthens the Government's resolve to 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.

(With Inputs from PIB)