CBDT releases Fifth Annual Advanced Pricing Agreement Report

The Advance Pricing Agreement (APA) programme of CBDT is one of its foremost initiatives for promoting an investor-friendly and non-adversarial tax regime in India.

The Indian APA initiative has made a substantial contribution to the Government of India’s aim of improving ease of doing business since its establishment.

The Central Board of Direct Taxes (CBDT) has recently released the fourth and fifth annual APA reports. The reports present key data and statistics pertaining to the APA programme. These include sectoral distribution of applicants, nature of transactions covered, transfer pricing methodologies applied etc.

The fifth report contains the status of applications filed until March 31, 2023. For the time being, the figures are up to Financial Year (FY) 2022-23. The report covers the APA program’s numerous accomplishments in the financial year 2022-23. CBDT signed the most APAs in any financial year since the program’s inception in FY 2022-23, with a total of 95 APAs signed.

CBDT also inked 32 Bilateral Advance Pricing Agreements (BAPAs) in FY 2022-23, the most in any financial year to date. This amount is more than double the previous signing record of 13 BAPAs in a single financial year.

The study also examines the distribution of these applications by nation. The BAPAs were signed as a result of entering into Mutual Agreements with India’s treaty partners, including Finland, the United Kingdom, the United States, Denmark, Singapore, and Japan, demonstrating the maturity of India’s relationship with its treaty partners.

A record of the largest number of single day signings in the history of the programme was also created with a total of 21 APAs signed on 24th March, 2023. Additionally, signing of the 400th Unilateral Advance Pricing Agreement (UAPA) and the 500th APA were also milestones achieved in this year.

CBDT stands committed to strengthen the APA programme further.

For Official Report Download PDF Given Below: