01 March 2017 Current Affairs: The Central Board of Direct Taxes (CBDT) on 28 February 2017 signed ten Advance Pricing Agreements (APAs) with taxpayers. The APAs were signed in various sectors of the economy like Telecom, Pharmaceutical, Banking & Finance, Steel, Retail and Information Technology, etc.
In the current financial year, a total of 76 APAs (7 Bilateral APAs and 61 Unilateral APAs) have already been signed by CBDT.
With this, the total number of APAs entered into by the CBDT reached 140 in number. This includes 10 Bilateral APAs and 130 Unilateral APAs. The CBDT expects more APAs to be signed before the end of the current fiscal.
Highlights : Two of these ten agreements are Bilateral APAs with the United Kingdom and Japan. While, seven of these agreements have rollback provisions in them.
The APAs entered into over the last week pertain to various sectors of the economy like Telecom, Pharmaceutical, Banking & Finance, Steel, Retail, Information Technology, etc.
The international transactions covered in these agreements include Payment of Royalty Fee, Trading in Goods, IT Enabled Services, Software Development Services and Marketing Support Services.
The APAs also cover Clinical Research Services, Non-binding Investment Advisory Services, Payment of Interest on ECB, etc.