New guidelines for Advance Pricing Agreements (APAs) have been announced by India’s Central Board of Direct Taxes.APAs are in effect from July 1, 2012.
The guidelines apply both to international transactions which have been undertaken (i.e. those of a continuing nature from dealings already underway) and to proposed international transactions.
For continuing transactions, an Applicant needs to apply for an APA before the first day of the financial year to which the international transaction relates, which rules out the possibility of seeking an APA for the current financial year, but an APA may still be sought with respect to the current financial year for a transaction that is to beundertaken.
Please contact Dafydd Williamsfor assistance in obtaining a Tax Residency Certification or with drafting an APA, filing the application, ensuring ongoing compliance, or managing renewals.
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