On 29th January, 2016, the Central Board of Direct Taxes (CBDT) has entered into two bilateral Advance Pricing Agreements (APAs) with United Kingdom. CBDT has concluded three bilateral APAs, the first one being a bilateral APA signed with Japan in December, 2014 and the two bilateral APAs signed with two Indian group entities of a UK based Multi-National Company (MNC).
The significance of the bilateral APAs is to provide a stable and predictable tax regime, the two Indian companies have been provided with tax certainty for 12 years each (5 years under MAP and 7 years under APA). It also address the issues of payment of management & service charges and payment of royalty.
-Press Information Bureau
