Two More APAs Signed by CBDT

The Central Board of Direct Taxes announced that it had signed two more advance pricing agreements (APAs) with taxpayers

It aims to reduce litigation by providing certainty in transfer pricing.
These APAs are related to automobile and healthcare consulting sectors.
With these two agreements, the total number of APAs has reached 177 in which there are 164 unilateral APAs and 13 bilateral APAs.
The international transactions covered in these two APAs include the provision of IT-enabled services, provision of software development services and provision of engineering design services.
APA scheme attempts to provide certainty to taxpayers in the domain of transfer pricing.
It specifies the methods of pricing and determining the arm`s length price of international transactions in advance for a maximum period of five future years.