7(Advance Pricing Agreements(APA)) Flashcards Preview

2 September > 7(Advance Pricing Agreements(APA)) > Flashcards

Flashcards in 7(Advance Pricing Agreements(APA)) Deck (5)
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1
Q

What are APA

A

They are the agreement between a tax authority and tax payer to determine the transfer price and methodology.

2
Q

why is it needed

A

Many times the local units sell their share at less than market price so this creates a consensus between both.
ex-vodafone and nokia case

3
Q

why in news

A

CCBDT has signed 26 new APA this year

4
Q

Types of APA

A

1 Unilateral APA=Between tax payer and tax authority

2 Bilateral APA=Also include associated enterprise or parent company in abroad.

3 Multilater APA=Tax authorities of multiple countries also present

5
Q

When was CBDT established

A

Under CBDT act of 1963(Remeber like Shastri brought CBDT before going to TASHKENT)
Mo Finace

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