CBDT signs record number of 125 Advance Pricing Agreements in FY 2023-24

The Central Board of Direct Taxes (CBDT) has entered into a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with Indian taxpayers. 

This includes 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs). This marks the highest-ever APA signings in any financial year since the launch of the APA programme. The number of APAs signed in FY 2023-24 also represents a 31% increase compared to the 95 APAs signed during the preceding financial year. With this, the total number of APAs since the inception of the APA programme has gone up to 641, comprising 506 UAPAs and 135 BAPAs.

During FY 2023-24, CBDT also signed the maximum number of BAPAs in any financial year till date. The BAPAs were signed as a consequence of entering into Mutual Agreements with India’s treaty partners namely Australia, Canada, Denmark, Japan, Singapore, the UK and the US.

Join PSU Connect on WhatsApp now for quick updates! Click here

Read Also : MNRE Announces Amendment to ALMM Order 2019 to Advance Solar Manufacturing

The APA Scheme endeavours to provide specific attention to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years, as a result of which, tax certainty is provided for nine years.

Read Also : CMD NBCC inaugurates program on application of AI and GEN AI in HR functions in PSU’s

The signing of bilateral APAs additionally provides taxpayers with protection from any anticipated or actual double taxation.

The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business, especially for Multinational Enterprises, which have a large number of cross-border transactions within their group entities.

Read Also : THDCIL Kicks Off National Level Water Sports Cup 2024 at Tehri