miércoles, 6 de julio de 2016

Indian APA has persuasive value for resolving disputes, even beyond rollback years

India’s Income Tax Appellate Tribunal, Delhi bench, on April 25 issued an important ruling in the Ranbaxy Laboratories Limited case, stating that an advance pricing agreement (APA) can have strong persuasive value for resolving disputes regarding years prior to the rollback years, if the nature of the international transactions and the taxpayer’s and the associated enterprises’ functions, assets, and risks remain unchanged.

The Indian tribunal held that:
“The concept and the methodology laid down in the APA can have the guidance value for the revenue authorities for the purpose of comparability analysis. The main intent of the APA is to protect the fair share of the revenue of the states in simple and efficient manner and to protect the tax base. …Therefore, the agreement entered into by the CBDT with the assesse, which has considered all the aspects of the manner of termination of the ALP which are also similar for this year, should be given highest sanctity and therefore the mechanism suggested in that agreement should be necessarily followed in determining ALP of the transactions for this year.”

Source & more info: Deloitte

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