• Service: Tax, Global Transfer Pricing Services
  • Type: Regulatory update
  • Date: 4/2/2014

India - Statistics from first year of APA program 

April 2:  India’s tax authorities completed the first year of the advance pricing agreement (APA) program, and statistics reveal that for 2013:
  • Taxpayers filed 140 applications for APAs in 2013.
  • The first set of APAs was concluded with five multinational corporations, covering a range of international transactions—e.g., interest payments, corporate guarantees, non-binding investment advisory services, and contract manufacturing.
  • The taxpayers concluding the first set of APAs are engaged in the pharmaceutical, telecom, exploration, and financial services industrial sectors.
  • These first APAs were concluded within a one-year period (compared to an internationally accepted norm of at least two years).

Under India’s APA program, an APA generally is valid for up to five years, and may be subject to renewal, revision or cancellation under certain circumstances.

During the five-year period, the taxpayer must file an annual report to confirm its compliance with the terms of the APA (and the tax authorities are to conduct a limited audit to verify compliance).

Read an April 2014 report [PDF 396 KB] prepared by the KPMG member firm in India: India signs its first set of Advance Pricing Agreements (APAs) in one year since introduction of the APA program

Contact a tax professional with KPMG's Global Transfer Pricing Services.

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