The Central Board of Direct Taxes (CBDT) has entered into 26 advance pricing agreements (APAs) in the first five months of the current financial year, according to an official statement released on Wednesday.
The total number of APAs now stands at 297, which includes 32 bilateral APAs. Of these 26 APAs, one is a bilateral APA with Britain and the remaining 25 are unilateral APAs.
The APAs pertain to various sectors and sub-sectors of the economy like information technology, banking, semiconductor, power, pharmaceutical, hydrocarbon, publishing, and automobiles.
The international transactions covered under these agreements include 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 use of technology and brand, trading and distribution, payment of charter charges, corporate guarantee, intra-group services and interest on financial instruments.
The progress of the APA scheme strengthens the government's resolve of fostering a non-adversarial tax regime, said the statement. 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, it added.
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