The Central Board of Direct Taxes has entered into seven Advance Pricing Agreements (APAs) and had signed two bilateral APAs last week with U.K. and Japan. The total number of APAs entered into by the CBDT has reached 140. This includes 10 bilateral APAs and 130 unilateral APAs.
In the current financial year, 76 APAs (7 Bilateral APAs and 61 Unilateral APAs) have already been entered into. The CBDT expects more APAs to be concluded and signed before the end of the current fiscal.
International transactions covered in these agreements include payment of royalty fee, trading in goods, IT Enabled Services, software development services, marketing support services. The APAs entered into over the last week pertain to sectors such as pharma, retail, IT and telecom, banking and finance.
Since its inception, the APA scheme has evinced a lot of interest from taxpayers and that has resulted in more than 700 applications (both unilateral and bilateral) being filed in about five years