7(Advance Pricing Agreements(APA)) Flashcards
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)
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