The CBDT has signed five unilateral advance pricing agreements (APAs) and 2 bilateral APAs with Indian taxpayers in January as it looks to reduce litigation by providing certainty in transfer pricing.
The seven APAs entered into during January pertain to sectors like banking, insurance, investment advisory, information technology, chemicals and engineering.
"The international transactions covered in these agreements include provision of IT-enabled services, provision of software development services, contract manufacturing, payment of royalty, sale of goods," a finance ministry statement said.
With the signing of these agreements, the total number of APAs entered into by the Central Board of Direct Taxes (CBDT) has gone up to 196, which includes 178 unilateral APAs and 18 bilateral APAs.
In the current financial year, a total of 44 APAs (seven bilateral and 37 unilateral) have been signed till date.
The two bilateral agreements signed in January, include the first such pact signed with the USA.
"The progress of the APA scheme strengthens the government's resolve of fostering a non-adversarial tax regime," the statement added.
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