CBDT Releases Fifth Annual APA (Advance Pricing Agreement) Report

CBDT Releases Fifth Annual APA (Advance Pricing Agreement) Report

The Advance Pricing Agreement (APA) program by CBDT is a significant effort to create a business-friendly and non-confrontational tax environment in India.

The Indian APA initiative has greatly contributed to India's goal of improving the ease of doing business since its inception.

Recently, the Central Board of Direct Taxes (CBDT) released its fourth and fifth annual APA reports, providing essential data and statistics about the APA program. This includes information about the types of applicants, transaction nature, and transfer pricing methods used.

The fifth report covers applications filed up to March 31, 2023, with figures up to the Financial Year (FY) 2022-23. It highlights the achievements of the APA program in FY 2022-23. This fiscal year saw the highest number of APAs signed since the program began, with a total of 95 agreements.

CBDT also entered into 32 Bilateral Advance Pricing Agreements (BAPAs) in FY 2022-23, which is a remarkable increase compared to the previous highest of 13 BAPAs in a single fiscal year.

The report also breaks down the distribution of these applications by country. These BAPAs resulted from Mutual Agreements with India's treaty partners, including Finland, the United Kingdom, the United States, Denmark, Singapore, and Japan, reflecting India's strong relationships with these countries.

In a historic achievement, 21 APAs were signed on March 24, 2023, marking the most significant number of single-day signings in the program's history. Furthermore, the program reached milestones with the signing of the 400th Unilateral Advance Pricing Agreement (UAPA) and the 500th APA in this fiscal year.

Click Here to view the official report

CBDT is committed to further strengthening the APA program.

Also Read: Failed To Complete Verification After ITR Filing? Here Is What You Need To Do Now

Leave a reply