Guidance note on advanced pricing pacts issued

The Central Board of Direct Taxes (CBDT) has come out with a comprehensive guidance note with frequently asked questions on advance pricing agreements (APAs). An APA is an agreement between a taxpayer and tax authorities on the transfer pricing method and rate applicable to taxpayers' inter-company transactions. India had introduced APA provisions in the income tax law from July 1 last year. The CBDT had come out with the rules for the APA programme in August last year.