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CBDT signs two APAs for IT & Banking sectors
The Dollar Business Bureau The CBDT (Central Board of Direct Taxes) has signed 2 agreements with Indian tax payers with an intention to strengthen the government's commitment for a non-adversarial tax regime. The unilaterally signed advance pricing agreements have a provision that allows the government to “rollback” the agreement. A release shared by the press Information Bureau suggested that the CBDT entered into these APAs to cover areas pertaining to Information Technology, Banking and Financial sectors. A pricing agreement can be understood as a written contract between a supplier and a business customer on the pricing of a specific commodity. An Advanced Pricing Agreement considers the volatilities of price, since a quote may expire or is subject to change at any time. Prices ...
India resolves tax disputes worth Rs.5,000 cr with foreign companies
The cases that have been resolved in the past two years are related to sectors like software and other IT-enabled services, manufacturing and consultancy The Dollar Business Bureau According to the government, MAP is an effective tax dispute resolution mechanism, which ensures smooth business environment for foreign investors and reduce the number of cases under litigation The Indian tax authority has resolved 180 disputes worth Rs. 5,000 crore pending with various foreign companies since April 2014 under the framework of Mutual Agreement Procedure (MAP). MAP, which is part of the Double Taxation Avoidance Agreement signed by the Indian government with the US and other countries, allows smooth settlement of tax-related issues concerned with multinational companies operating from India. Most of the disputes emerge due ...
Tax dept inks seven new transfer pricing pacts
The Dollar Business Bureau As part of efforts to reduce tax disputes related to international transactions carried out by multinationals, the Indian Tax Department has signed seven new unilateral Advance Pricing Agreements (APAs), taking the total number of such pacts to 39. Of the total 39 APAs, 38 are unilateral and one is bilateral. “In the current fiscal year, which is the third year of APA programme, 30 agreements have been signed so far. Before the end of the financial year, more such agreements are expected to be signed,” the Finance Ministry said in a statement on Friday. The seven new APAs signed on Friday cover sectors like investment advisory, software development & IT enabled services and manufacturing. The initiative of ...
