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The income tax department on Tuesday decided to extend the deadline for filing of rollback applications for transfer pricing agreements till June 30. This comes as a relief to the multinational companies that were willing to file applications for advance pricing agreements (APAs), as they would get an additional window of three months.
An APA is an agreement between a taxpayer and the tax department detailing the transfer-pricing procedure for a particular set of transactions, arm’s length pricing and details of the transaction under review.
Under the rollback provision, an APA entered into for future transactions might also be applied to international transactions undertaken in previous four years. The APA roll back scheme was announced by Finance Minister Arun Jaitley in his maiden Budget but the final rules were notified earlier this month, which has set the deadline for application to March 31.
