The Central Board of Direct Taxes (CBDT) has signed a record 125 Advance Pricing Agreements (APAs) in FY 2023-24 with taxpayers across India. Out of these 125 APAs, there are 86 Unilateral APAs (UAPAs) and 39 Bilateral APAs (BAPAs), marking the highest-ever APA signings in any financial year since the launch of the APA programme.
The BAPAs were signed as a result of the government of India’s entering into Mutual Agreements with the governments of Australia, Canada, Denmark, Japan, Singapore, the UK and the US. The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years and has contributed significantly to the Government of India’s mission of promoting ease of doing business.
