Sec. 92CC & 92CD: Advance Pricing Agreement legislation is presently used in developed countries such as United Kingdom and the United States and is now through the Finance Bill of 2012 proposed to be introduced as a part of Indian tax legislation w.e.f 1st July 2012. The provisions relating to APAs have been introduced to provide certainty in the determination of arm‟s length price thereby reducing transfer pricing litigation.An APA is an agreement between a person and the Central Board of Direct Taxes (CBDT). This Agreement is to determine in advance, in relation to an international transaction, any of the following: The arm‟s length price Manner in which the arm‟s length price is to be determined An APA would be limited to a maximum of 5 consecutive financial years. The APA is binding on the following: The person in respect of whose transaction...
Budget 2012: Highlights - Advance Pricing Agreements (APA)
|Author:||Mr Anil Harish|
|Profession:||D.M. Harish & Co.|
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