2017
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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8
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5
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4
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3
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Detailed explanation-1: -The Central Board of Direct Taxes (CBDT) has entered into 62 Advance Pricing Agreements (APA) in FY 2021-22 with Indian taxpayers. This includes 13 Bilateral APAs (consequent to Mutual Agreement between India and its treaty partners) and 49 Unilateral APAs.
Detailed explanation-2: -Unilateral APA: an APA that involves only the tax payer and the tax authority of the country where the tax payer is located.
Detailed explanation-3: -An APA is an administrative approach that attempts to prevent transfer pricing disputes from arising by determining criteria for applying the arm’s length principle to transactions in advance of those transactions taking place.
Detailed explanation-4: -Bilateral Advance Pricing Arrangements (“BAPAs”), in a growing number of cases, have successfully contributed to providing advance tax certainty to both taxpayers and tax administrations, ensuring predictability in the tax treatment of international transactions.
Detailed explanation-5: -The Transfer Pricing (TP) Regulations were introduced in India in the year 2001, in order to prevent erosion of Indian tax base. The Indian TP Regulations are contained in Chapter X of the Income-tax Act, 1961 (“the Act”) under the title “Special Provisions relating to avoidance of tax”.