New Delhi, Nov 27 (IANS) In an effort to provide tax certainty to foreign investors, the Central Board of Direct Taxes (CBDT) has signed 11 unilateral advance pricing agreements (APA) with Indian subsidiaries of foreign companies, an official statement said on Friday.
Another 30-40 APAs are to be finalised before the end of this fiscal providing stability and confidence to foreign companies in India, a finance ministry statement said.
“These APAs were signed with Indian subsidiaries of foreign companies operating in various segments of the economy like investment advisory services, engineering design services, marine products, contract R&D, software development services, IT enabled services, cargo handling support services, etc,” it said, adding the endeavour is to foster environment of co-operation in matters of taxation through predictability of laws and reduced litigation.
While seven of these new APAs have rollback provisions contained in them, the other four are agreements for future five years.
“APAs with rollback provisions can cover a maximum period of nine years in total. With this round of signing, CBDT has so far entered into 31 APAs (30 unilateral and one bilateral),” said the statement.
The APA Programme was introduced in the Income Tax Act, 1961 in 2012 vide the Finance Act, 2012.