{"id":2081,"date":"2012-08-31T08:00:11","date_gmt":"2012-08-31T08:00:11","guid":{"rendered":"http:\/\/www.itatonline.org\/info\/?p=2081"},"modified":"2012-08-31T08:37:14","modified_gmt":"2012-08-31T08:37:14","slug":"cbdt-releases-transfer-pricing-advance-pricing-agreement-scheme-apa","status":"publish","type":"post","link":"https:\/\/itatonline.org\/info\/cbdt-releases-transfer-pricing-advance-pricing-agreement-scheme-apa\/","title":{"rendered":"CBDT Releases Transfer Pricing \u201cAdvance Pricing Agreement Scheme” (“APA”)"},"content":{"rendered":"

Vide Notification No. 36 of 2012 dated 30.08.2012, the CBDT has inserted Rules 10F to 10T to introduce the \u201cAdvance Pricing Agreement Scheme”.<\/p>\n

\"\"  Notification Of Transfer Pricing \u201cAdvance Pricing Agreement Scheme\" (\"APA\")<\/a><\/strong> (432.9 KiB, 6,642 hits)<\/p><\/div>\n

<\/p>\n

\n

[TO BE PUBLISHED IN THE GAZETTE OF INDIA EXTRAORDINARY, PART II, SECTION 3,<\/p>\n

SUB-SECTION (ii)]<\/p>\n

 <\/p>\n

GOVERNMENT OF INDIA<\/strong><\/p>\n

MINISTRY OF FINANCE<\/strong><\/p>\n

 <\/p>\n

DEPARTMENT OF REVENUE<\/strong><\/p>\n

[CENTRAL BOARD OF DIRECT TAXES]<\/strong><\/p>\n

 <\/p>\n

Notification No. 36 of 2012<\/strong><\/p>\n

 <\/p>\n

New Delhi, the 30th<\/sup>\u00a0 day of August, 2012<\/p>\n

 <\/p>\n

INCOME-TAX<\/strong><\/p>\n

 <\/p>\n

S.O.2005(E)<\/strong>.- In exercise of the powers conferred by sub-section (9) of section <\/strong>92CC read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend the Income-tax Rules, 1962, namely:-<\/p>\n

 <\/p>\n

1. (1). These rules may be called the Income-tax (Amendment) Rules, 2012.<\/p>\n

 <\/p>\n

(2). They shall come into force on the date of their publication in the official Gazette.<\/p>\n

 <\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In the Income-tax Rules, 1962 (hereafter referred to as the principal rules), –<\/p>\n

 <\/p>\n

(a)\u00a0\u00a0\u00a0\u00a0\u00a0 after rule\u00a0 10E, the following rule shall be inserted, namely.-<\/p>\n

 <\/p>\n

\u201cAdvance Pricing Agreement Scheme<\/p>\n

 <\/p>\n

Meaning of expressions used in matters in respect of advance pricing agreement.<\/strong><\/p>\n

 <\/p>\n

10F\u00a0\u00a0\u00a0\u00a0\u00a0 For the purposes of this rule and rules 10G to 10T,\u2013<\/p>\n

 <\/p>\n

(a)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201eagreement\u201f means an advance pricing agreement entered into between the Board and the applicant, with the approval of the Central Government, as referred to in sub-section (1) of section 92CC of the Act;<\/p>\n

 <\/p>\n

(b)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201capplication\u201d means an application for advance pricing agreement made under rule 10 I ;<\/p>\n

 <\/p>\n

(c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cbilateral agreement\u201d means an agreement between the Board and the applicant, subsequent to, and based on, any agreement<\/p>\n

 <\/p>\n

Page 1 of 28<\/p>\n<\/div>\n

 <\/p>\n

\n

 <\/p>\n

referred to in rule 44 GA between the competent authority in India with the competent authority in the other country regarding the most appropriate transfer pricing method or the arms\u201f length price;<\/p>\n

 <\/p>\n

(d)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201ccompetent authority in India\u201d means an officer authorised by the Central Government for the purpose of discharging the functions as such for matters in respect of any agreement entered into under section 90 or 90A of the Act;<\/p>\n

 <\/p>\n

(e)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201ccovered transaction\u201d means the international transaction or transactions for which agreement has been entered into;<\/p>\n

 <\/p>\n

(f)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201ccritical assumptions\u201d means the factors and assumptions that are so critical and significant that neither party entering into an agreement will continue to be bound by the agreement, if any of the factors or assumptions is changed;<\/p>\n

 <\/p>\n

(g)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cmost appropriate transfer pricing method\u201d means any of the transfer pricing method, referred to in sub-section (1) of section 92C of the Act, being the most appropriate method, having regard to the nature of transaction or class of transaction or class of associated persons or function performed by such persons or such other relevant factors prescribed by the Board under rule 10B and 10C;<\/p>\n

 <\/p>\n

(h)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cmultilateral agreement\u201d means an agreement between the Board and the applicant, subsequent to, and based on, any agreement referred to in rule 44GA between the competent authority in India with the competent authorities in the other countries regarding the most appropriate transfer pricing method or the arms\u201f length price;<\/p>\n

 <\/p>\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201ctax treaty\u201d means an agreement under section 90, or section 90A, of the Act for the avoidance of double taxation;<\/p>\n

 <\/p>\n

(j)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cteam\u201d means advance pricing agreement team consisting of income-tax authorities as constituted by the Board and including such number of experts in economics, statistics, law or any other field as may be nominated by the Director General of Income Tax (International Taxation);<\/p>\n

 <\/p>\n

(k)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u201cunilateral agreement\u201d means an agreement between the Board and the applicant which is neither a bilateral nor multilateral agreement.<\/p>\n

 <\/p>\n<\/div>\n

\n

Persons eligible to apply<\/strong><\/p>\n

 <\/p>\n

10G\u00a0\u00a0\u00a0 Any person who \u2013<\/p>\n

 <\/p>\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 has undertaken an international transaction; or<\/p>\n

(ii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 is contemplating to undertake an international transaction,<\/p>\n

 <\/p>\n

shall be eligible to enter into an agreement under these rules.<\/p>\n

 <\/p>\n

Pre-filing Consultation<\/strong><\/p>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
10H<\/td>\n(1)<\/td>\nEvery person proposing to enter into an agreement under these rules<\/td>\n<\/tr>\n
 <\/td>\nshall,\u00a0\u00a0 by\u00a0\u00a0 an\u00a0\u00a0 application\u00a0\u00a0 in\u00a0\u00a0 writing,\u00a0\u00a0 make\u00a0\u00a0 a\u00a0\u00a0 request\u00a0\u00a0 for\u00a0\u00a0 a\u00a0\u00a0 pre-filing<\/td>\n<\/tr>\n
 <\/td>\nconsultation.<\/td>\n<\/tr>\n
 <\/td>\n(2)<\/td>\nThe\u00a0 request\u00a0 for\u00a0 pre-filing\u00a0 consultation\u00a0 shall\u00a0 be\u00a0 made\u00a0 in\u00a0 Form\u00a0 No.\u00a0 3<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nCEC to the Director General of Income Tax (International Taxation).<\/td>\n<\/tr>\n
 <\/td>\n(3)<\/td>\nOn receipt of the request in Form No. 3 CEC, the team shall hold pre-<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nfiling consultation with the person referred to in rule 10G.<\/td>\n<\/tr>\n
 <\/td>\n(4)<\/td>\nThe<\/td>\ncompetent\u00a0\u00a0 authority\u00a0\u00a0 in\u00a0\u00a0 India\u00a0\u00a0 or\u00a0\u00a0 his\u00a0\u00a0 representative\u00a0\u00a0 shall\u00a0\u00a0 be<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nassociated\u00a0 in\u00a0 pre-filing\u00a0 consultation\u00a0 involving\u00a0 bilateral\u00a0 or\u00a0 multilateral<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nagreement.<\/td>\n<\/tr>\n
 <\/td>\n(5)<\/td>\nThe pre-filing consultation shall, among other things,-<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(i)<\/td>\ndetermine the scope of the agreement;<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(ii)<\/td>\nidentify transfer pricing issues;<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(iii)<\/td>\ndetermine\u00a0\u00a0 the\u00a0\u00a0 suitability\u00a0\u00a0 of\u00a0\u00a0 international\u00a0\u00a0 transaction\u00a0\u00a0 for\u00a0\u00a0 the<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\nagreement;<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(iv)<\/td>\ndiscuss broad terms of the agreement.<\/td>\n<\/tr>\n
 <\/td>\n(6)<\/td>\nThe pre-filing consultation shall\u2013<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(i)<\/td>\nnot\u00a0 bind\u00a0 the\u00a0 Board\u00a0 or\u00a0 the\u00a0 person\u00a0 to\u00a0 enter\u00a0 into\u00a0 an\u00a0 agreement<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\nor initiate the agreement process;<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(ii)<\/td>\nnot\u00a0\u00a0 be\u00a0\u00a0 deemed\u00a0\u00a0 to\u00a0 mean\u00a0\u00a0 that\u00a0\u00a0 the\u00a0\u00a0 person\u00a0\u00a0 has\u00a0\u00a0 applied\u00a0\u00a0 for<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\nentering into an agreement.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n<\/div>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/td>\nApplication for advance pricing agreement<\/strong><\/td>\n <\/td>\n <\/td>\n<\/tr>\n
10 I<\/td>\n(1)\u00a0 Any\u00a0 person, who has entered\u00a0 into\u00a0 a pre-filing\u00a0 consultation\u00a0 as\u00a0 referred<\/td>\n<\/tr>\n
 <\/td>\n\n

to\u00a0\u00a0 in\u00a0\u00a0 rule\u00a0\u00a0 10H\u00a0 may,\u00a0 if\u00a0\u00a0 desires\u00a0\u00a0 to\u00a0\u00a0 enter\u00a0 into\u00a0\u00a0 an\u00a0\u00a0 agreement\u00a0\u00a0 furnish\u00a0\u00a0 an<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\napplication in Form No. 3 CED alongwith the requisite fee.<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n\n

(2)\u00a0 The\u00a0 application\u00a0 shall\u00a0 be\u00a0 furnished\u00a0 to\u00a0 Director\u00a0 General\u00a0 of\u00a0 Income\u00a0 Tax<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n\n

(International\u00a0\u00a0 Taxation)\u00a0\u00a0 in\u00a0\u00a0 case\u00a0\u00a0 of\u00a0\u00a0 unilateral\u00a0\u00a0 agreement\u00a0\u00a0 and\u00a0\u00a0 to\u00a0\u00a0 the<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n\n

competent authority in India in case of bilateral or multilateral agreement.<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n\n

(3)\u00a0\u00a0\u00a0 Application in Form No. 3 CED may be filed by the person referred to<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\nin rule 10G at any time\u2013<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n\n

(i)\u00a0\u00a0\u00a0\u00a0 before\u00a0 the\u00a0 first\u00a0 day\u00a0 of\u00a0 the\u00a0 previous\u00a0 year\u00a0 relevant\u00a0 to\u00a0 the\u00a0 first<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\n <\/td>\n\n

assessment year for which the application is made, in respect of<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\n <\/td>\n\n

transactions which are of a continuing nature from dealings that<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\n <\/td>\nare already occurring; or<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n(ii)<\/td>\n\n

before\u00a0\u00a0 undertaking\u00a0\u00a0 the\u00a0\u00a0 transaction\u00a0\u00a0 in\u00a0\u00a0 respect\u00a0\u00a0 of\u00a0\u00a0 remaining<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\n <\/td>\ntransactions.<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n\n

(4)\u00a0\u00a0\u00a0 Every\u00a0 application\u00a0 in\u00a0 Form\u00a0 No.\u00a0 3\u00a0 CED\u00a0 shall\u00a0 be\u00a0 accompanied\u00a0 by\u00a0 the<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\nproof of payment of fees as specified in sub-rule (5).<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n\n

(5)\u00a0\u00a0\u00a0 The\u00a0 fees payable shall be\u00a0 in\u00a0 accordance with\u00a0 following\u00a0 table\u00a0 based<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\n\n

on\u00a0 the\u00a0 amount of international\u00a0 transaction\u00a0 entered into or proposed<\/p>\n<\/td>\n<\/tr>\n

 <\/td>\n <\/td>\nto be undertaken in respect of which the agreement is proposed:<\/td>\n<\/tr>\n
 <\/td>\n <\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nAmount of international transaction entered into or<\/td>\n\n

Fee<\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nproposed\u00a0 to\u00a0 be\u00a0 undertaken\u00a0 in\u00a0 respect\u00a0 of\u00a0 which<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nagreement\u00a0\u00a0\u00a0 is\u00a0\u00a0\u00a0 proposed\u00a0\u00a0\u00a0 during\u00a0\u00a0\u00a0 the\u00a0\u00a0\u00a0 proposed<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nperiod of agreement.<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nAmount not exceeding Rs. 100 crores<\/td>\n\n

10 lacs<\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nAmount not exceeding Rs. 200 crores<\/td>\n\n

15 lacs<\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n
 <\/td>\n <\/td>\nAmount exceeding Rs. 200 crores<\/td>\n\n

20 lacs<\/p>\n<\/td>\n

 <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

 <\/p>\n

Withdrawal of application for agreement<\/strong><\/p>\n

 <\/p>\n

10 J (1) The applicant may withdraw the application for agreement at any time before the finalisation of the terms of the agreement.<\/p>\n

 <\/p>\n

 <\/p>\n

(2) The application for withdrawal shall be in Form No. 3CEE.<\/p>\n

 <\/p>\n<\/div>\n

\n

 <\/p>\n

(3) The fee paid shall not be refunded on withdrawal of application by the applicant.<\/p>\n

 <\/p>\n

Preliminary processing of application<\/strong><\/p>\n

 <\/p>\n

10 K\u00a0\u00a0 (1)\u00a0 Every\u00a0\u00a0 application\u00a0\u00a0 filed\u00a0\u00a0 in\u00a0\u00a0 Form\u00a0\u00a0 No.\u00a0 3CED\u00a0 shall\u00a0\u00a0 be\u00a0\u00a0 complete\u00a0\u00a0 in\u00a0\u00a0 all<\/p>\n

respects and accompanied by requisite documents.<\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If any defect is noticed in the application in Form No. 3CED or if any relevant document is not attached thereto or the application is not in accordance with understanding reached in pre-filing consultation referred to in rule 10H, the Director General of Income-tax (International Taxation) (for unilateral agreement) and competent authority in India (for bilateral or multilateral agreement) shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The applicant shall remove the deficiency or modify the application within a period of fifteen days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf, may be extended, so however, that the total period of removal of deficiency or modification does not exceed thirty days.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Director General of Income Tax (International Taxation) or the competent authority in India, as the case may be, on being satisfied, may pass an order providing that application shall not be allowed to be proceeded with if the application is defective and defect is not removed by applicant in accordance with sub-rule (3).<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 No order under sub-rule (4) shall be passed without providing an opportunity of being heard to the applicant and if an application is not allowed to be proceeded with, the fee paid by the applicant shall be refunded.<\/p>\n

 <\/p>\n

Procedure<\/strong><\/p>\n

 <\/p>\n

10 L (1) If the application referred to in rule 10K has been allowed to be proceeded with, the team or the competent authority in India or his representative shall process the same in consultation and discussion with the applicant in accordance with provisions of this rule.<\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For the purpose of sub-rule (1), it shall be competent for the team or the competent authority in India or its representative to\u2013<\/p>\n<\/div>\n

\n

 <\/p>\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 hold meetings with the applicant on such time and date as it deem fit;<\/p>\n

 <\/p>\n

(ii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 call for additional document or information or material from the applicant;<\/p>\n

 <\/p>\n

(iii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 visit the applicant\u201fs business premises; or<\/p>\n

 <\/p>\n

(iv)\u00a0\u00a0\u00a0\u00a0\u00a0 make such inquiries as it deems fit in the circumstances of the case.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For the purpose of sub-rule (1), the applicant may, if he considers it necessary, provide further document and information for consideration of the team or the competent authority in India or his representative.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For bilateral or multilateral agreement, the competent authority shall forward the application to Director General of Income Tax (International Taxation) who shall assign it to one of the teams.<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The team, to whom the application has been assigned under sub-rule (4), shall carry out the enquiry and prepare a draft report which shall be forwarded by the Director General of Income Tax (International Taxation) to the competent authority in India.<\/p>\n

 <\/p>\n

(6)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 If the Applicant makes a request for bilateral or multilateral agreement in its application, the competent authority in India shall in addition to the procedure provided in this rule invoke the procedure provided in the rule 44 GA.<\/p>\n

 <\/p>\n

(7)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Director General of Income Tax (International Taxation) (for unilateral agreement) or the competent authority in India (for bilateral or multilateral agreement) and the applicant shall prepare a proposed mutually agreed draft agreement enumerating the result of the process referred to in sub-rule (1) including the effect of the arrangement referred to in sub-rule (5) of rule 44GA which has been accepted by the applicant in accordance with sub-rule (8) of the said rule.<\/p>\n

 <\/p>\n<\/div>\n

\n

(8)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The agreement shall be entered into by the Board with the applicant after its approval by the Central Government.<\/p>\n

 <\/p>\n

(9)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Once an agreement has been entered into the Director General of Income Tax (International Taxation) or the competent authority in India, as the case may be, shall cause a copy of the agreement to be sent to the Commissioner of Income Tax having jurisdiction over the assessee.<\/p>\n

 <\/p>\n

Terms of the agreement<\/strong><\/p>\n

 <\/p>\n

10 M\u00a0\u00a0 (1)\u00a0\u00a0 An agreement may among other things, include \u2013<\/p>\n

 <\/p>\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the international transactions covered by the agreement;<\/p>\n

 <\/p>\n

(ii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the agreed transfer pricing methodology, if any;<\/p>\n

 <\/p>\n

(iii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 determination of arm\u201fs length price, if any;<\/p>\n

 <\/p>\n

(iv)\u00a0\u00a0\u00a0\u00a0\u00a0 definition of any relevant term to be used in items (ii) or (iii);<\/p>\n

 <\/p>\n

(v)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 critical assumptions;<\/p>\n

 <\/p>\n

(vi)\u00a0\u00a0\u00a0\u00a0\u00a0 the conditions if any other than provided in the Act or these rules.<\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The agreement shall not be binding on the Board or the assessee if there is a change in any of critical assumptions or failure to meet conditions subject to which the agreement has been entered into.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The binding effect of agreement shall cease only if any party has given due notice of the concerned other party or parties.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case there is a change in any of the critical assumptions or failure to meet the conditions subject to which the agreement has been entered into, the agreement can be revised or cancelled, as the case may be.<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The assessee which has entered into an agreement shall give a notice in writing of such change in any of the critical assumptions or failure to meet conditions to the Director General of Income Tax (International Taxation) as soon as it is practicable to do so.<\/p>\n

 <\/p>\n

(6)\u00a0\u00a0\u00a0 The Board shall give a notice in writing of such change in critical assumptions or failure to meet conditions to the assessee, as soon as it comes to the knowledge of the Board.<\/p>\n<\/div>\n

\n

 <\/p>\n

(7)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The revision or the cancellation of the agreement shall be in accordance with rules 10Q and 10R respectively.<\/p>\n

 <\/p>\n

Amendments to Application<\/strong><\/p>\n

 <\/p>\n

10 N (1) An applicant may request in writing for an amendment to an application at any stage, before the finalisation of the terms of the agreement.<\/p>\n

 <\/p>\n

(2) The Director General of Income Tax (International Taxation) (for unilateral agreement) or the competent authority in India (for bilateral or multilateral agreement) may, allow the amendment to the application, if such an amendment does not have effect of altering the nature of the application as originally filed.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The amendment shall be given effect only if it is accompanied by the additional fee, if any, necessitated by such amendment in accordance with fee as provided in rule 10 I.<\/p>\n

 <\/p>\n

 <\/p>\n

Furnishing of Annual Compliance Report<\/strong><\/p>\n

 <\/p>\n

10 O (1) The assessee shall furnish an annual compliance report to Director General of Income Tax (international Taxation) for each year covered in the agreement.<\/p>\n

 <\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The annual compliance report shall be in Form 3CEF.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The annual compliance report shall be furnished in quadruplicate, for each of the years covered in the agreement, within thirty days of the due date of filing the income tax return for that year, or within ninety days of entering into an agreement, whichever is later.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Director General of Income Tax (International Taxation) shall send one copy of annual compliance report to the competent authority in India, one copy to the Commissioner of Income Tax who has the jurisdiction over the income-tax assessment of the assessee and one copy to the Transfer Pricing Officer having the jurisdiction over the assessee.<\/p>\n

 <\/p>\n

 <\/p>\n<\/div>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
 <\/td>\nCompliance Audit of the agreement<\/strong><\/td>\n<\/tr>\n
10 P<\/td>\n(1)\u00a0 The\u00a0 Transfer\u00a0 Pricing\u00a0 Officer\u00a0 having\u00a0 the\u00a0 jurisdiction\u00a0 over\u00a0 the\u00a0 assessee<\/td>\n<\/tr>\n
 <\/td>\nshall\u00a0 carry\u00a0 out\u00a0 the\u00a0 compliance\u00a0 audit\u00a0 of\u00a0 the\u00a0 agreement\u00a0 for\u00a0 each\u00a0 of\u00a0 the<\/td>\n<\/tr>\n
 <\/td>\nyear covered in the agreement.<\/td>\n<\/tr>\n
 <\/td>\n(2)For\u00a0 the\u00a0 purposes\u00a0 of\u00a0 sub-rule(1),\u00a0 the\u00a0\u00a0 Transfer\u00a0 Pricing\u00a0 Officer\u00a0 may<\/td>\n<\/tr>\n
 <\/td>\nrequire \u2013<\/td>\n<\/tr>\n
 <\/td>\n(i)<\/td>\nthe assessee to substantiate compliance with the terms of the<\/td>\n<\/tr>\n
 <\/td>\nagreement,\u00a0\u00a0\u00a0 including\u00a0\u00a0\u00a0 satisfaction\u00a0\u00a0\u00a0 of\u00a0\u00a0\u00a0 the\u00a0\u00a0\u00a0 critical\u00a0\u00a0\u00a0 assumptions,<\/td>\n<\/tr>\n
 <\/td>\ncorrectness\u00a0 of\u00a0 the\u00a0 supporting\u00a0 data\u00a0 or\u00a0 information\u00a0 and\u00a0 consistency<\/td>\n<\/tr>\n
 <\/td>\nof the application of the transfer pricing method;<\/td>\n<\/tr>\n
 <\/td>\n(ii)<\/td>\nthe\u00a0\u00a0 assessee\u00a0\u00a0 to\u00a0\u00a0 submit\u00a0\u00a0 any\u00a0\u00a0 information,\u00a0\u00a0 or\u00a0\u00a0 document,\u00a0\u00a0 to<\/td>\n<\/tr>\n
 <\/td>\nestablish that the terms of the agreement has been complied with.<\/td>\n<\/tr>\n
 <\/td>\n(3)The Transfer Pricing Officer shall submit the compliance audit report,<\/td>\n<\/tr>\n
 <\/td>\nfor each year covered in the agreement, to the Director General of<\/td>\n<\/tr>\n
 <\/td>\nIncome Tax (International Taxation) in case of unilateral\u00a0 agreement<\/td>\n<\/tr>\n
 <\/td>\nand\u00a0 to\u00a0 the\u00a0 competent\u00a0 authority\u00a0 in\u00a0 India,\u00a0 in\u00a0 case\u00a0 of\u00a0 bilateral\u00a0 or<\/td>\n<\/tr>\n
 <\/td>\nmultilateral\u00a0 agreement,\u00a0 mentioning\u00a0 therein\u00a0 his\u00a0 findings\u00a0 as\u00a0 regards<\/td>\n<\/tr>\n
 <\/td>\ncompliance by the assessee with terms of the agreement.<\/td>\n<\/tr>\n
 <\/td>\n(4)The\u00a0 Director\u00a0 General\u00a0 of\u00a0 Income\u00a0 Tax\u00a0 (International\u00a0 Taxation)\u00a0 shall<\/td>\n<\/tr>\n
 <\/td>\nforward\u00a0 the\u00a0 report\u00a0 to\u00a0 the\u00a0 Board\u00a0 in\u00a0 a\u00a0 case\u00a0 where\u00a0 there\u00a0 is\u00a0 finding\u00a0 of<\/td>\n<\/tr>\n
 <\/td>\nfailure\u00a0 on\u00a0 part of\u00a0 assessee\u00a0 to comply with\u00a0 terms of\u00a0 agreement\u00a0 and<\/td>\n<\/tr>\n
 <\/td>\ncancellation of the agreement is required.<\/td>\n<\/tr>\n
 <\/td>\n(5)The\u00a0\u00a0 compliance\u00a0\u00a0 audit\u00a0\u00a0 report\u00a0\u00a0 shall\u00a0\u00a0 be\u00a0 furnished\u00a0\u00a0 by\u00a0\u00a0 the\u00a0\u00a0 Transfer<\/td>\n<\/tr>\n
 <\/td>\nPricing Officer within six months from the end of the month in which<\/td>\n<\/tr>\n
 <\/td>\nthe\u00a0 Annual\u00a0 Compliance\u00a0 Report\u00a0 referred\u00a0 to\u00a0 in\u00a0 rule\u00a0 10\u00a0 O\u00a0 is\u00a0 received<\/td>\n<\/tr>\n
 <\/td>\nby the Transfer Pricing Officer.<\/td>\n<\/tr>\n
 <\/td>\n(6)The\u00a0\u00a0\u00a0 regular\u00a0\u00a0\u00a0 audit\u00a0\u00a0\u00a0 of\u00a0\u00a0\u00a0 the\u00a0\u00a0\u00a0 covered\u00a0\u00a0\u00a0 transactions\u00a0\u00a0\u00a0 shall\u00a0\u00a0\u00a0 not\u00a0\u00a0\u00a0 be<\/td>\n<\/tr>\n
 <\/td>\nundertaken by the Transfer Pricing Officer if an agreement has been<\/td>\n<\/tr>\n
 <\/td>\nentered into under rule 10L except where the agreement has been<\/td>\n<\/tr>\n
 <\/td>\ncancelled under rule 10R.<\/td>\n<\/tr>\n
 <\/td>\nRevision of an agreement<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n<\/div>\n

\n

10 Q (1) An agreement, subsequent to it having been entered into, may be revised by the Board, if.-<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

(a)\u00a0\u00a0\u00a0 there is a change in critical assumptions or failure to meet a condition subject to which the agreement has been entered into;<\/p>\n

 <\/p>\n

(b)\u00a0\u00a0\u00a0 there is a change in law that modifies any matter covered by the agreement but is not of the nature which renders the agreement to be non binding ; or<\/p>\n

 <\/p>\n

(c)\u00a0\u00a0\u00a0\u00a0 there is a request from competent authority in the other country requesting revision of agreement, in case of bilateral or multilateral agreement.<\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 An agreement may be revised by the Board either suo-moto<\/em> or on request of the assessee or the competent authority in India or the Director General of Income Tax (International Taxation).<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Except when the agreement is proposed to be revised on the request of the assessee, the agreement shall not be revised unless an opportunity of being heard has been provided to the assessee and the assessee is in agreement with the proposed revision.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case the assessee is not in agreement with the proposed revision the agreement may be cancelled in accordance with rule-10R.<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case the Board is not in agreement with the request of the assessee for revision of the agreement, the Board shall reject the request in writing giving reason for such rejection.<\/p>\n

 <\/p>\n

(6)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For the purpose of arriving at the agreement for the proposed revision, the procedure provided in rule 10 L may be followed so far as they apply.<\/p>\n

 <\/p>\n

(7)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The revised agreement shall include the date till which the original agreement is to apply and the date from which the revised agreement is to apply.<\/p>\n

 <\/p>\n

Cancellation of an agreement<\/strong><\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

10 R (1) An agreement shall be cancelled by the Board for any of the following reasons:<\/p>\n

 <\/p>\n<\/div>\n

\n

(i)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the compliance audit referred to in rule 10P has resulted in the finding of failure on the part of the assessee to comply with the terms of the agreement;<\/p>\n

 <\/p>\n

(ii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the assessee has failed to file the annual compliance report in time;<\/p>\n

 <\/p>\n

(iii)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the annual compliance report furnished by the assessee contains material errors; or<\/p>\n

 <\/p>\n

(iv)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 the agreement is to be cancelled under sub-rule (4) of rule 10Q.<\/p>\n

 <\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Board shall give an opportunity of being heard to the assessee, before proceeding to cancel an application.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The competent authority in India shall communicate with the competent authority in the other country or countries and provide reason for the proposed cancellation of the agreement in case of bilateral or multilateral agreement.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The order of cancellation of the agreement shall be in writing and shall provide reasons for cancellation and for non acceptance of assessee\u201fs submission, if any.<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The order of cancellation shall also specify the effective date of cancellation of the agreement, where applicable.<\/p>\n

 <\/p>\n

(6)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The order under the Act, declaring the agreement as void ab initio<\/em>, on account of fraud or misrepresentation of facts, shall be in writing and shall provide reason for such declaration and for non acceptance of assessee\u201fs submission, if any.<\/p>\n

 <\/p>\n

(7)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The order of cancellation shall be intimated to the Assessing Officer and the Transfer Pricing Officer, having jurisdiction over the assessee.<\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n\n\n\n\n\n\n\n
 <\/td>\nRenewing an agreement<\/strong><\/td>\n<\/tr>\n
10 S<\/td>\nRequest\u00a0\u00a0 for\u00a0\u00a0 renewal\u00a0\u00a0 of\u00a0\u00a0 an\u00a0\u00a0 agreement\u00a0\u00a0 may\u00a0\u00a0 be\u00a0\u00a0 made\u00a0\u00a0 as\u00a0\u00a0 a\u00a0\u00a0 new<\/td>\n<\/tr>\n
 <\/td>\napplication for agreement, using the same procedure as outlined in these<\/td>\n<\/tr>\n
 <\/td>\nrules except pre filing consultation as referred to in rule 10H.<\/td>\n<\/tr>\n
 <\/td>\nPage 11 of 28<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

 <\/p>\n

\n

Miscellaneous<\/strong><\/p>\n

 <\/p>\n

 <\/p>\n\n\n\n\n\n
10 T<\/td>\n(1)\u00a0 Mere\u00a0 filing\u00a0 of\u00a0 a\u00a0 application\u00a0 for\u00a0 an\u00a0 agreement\u00a0 under\u00a0 these\u00a0 rules\u00a0 shall<\/td>\n<\/tr>\n
 <\/td>\nnot\u00a0 prevent\u00a0 the\u00a0 operation\u00a0 of\u00a0 Chapter\u00a0 X\u00a0 of\u00a0 the\u00a0 Act\u00a0 for\u00a0 determination\u00a0 of<\/td>\n<\/tr>\n
 <\/td>\narms\u201f length price under that Chapter till the agreement is entered into.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The negotiation between the competent authority in India and the competent authority in the other country or countries, in case of bilateral or multilateral agreement, shall be carried out in accordance with the provisions of the tax treaty between India and the other country or countries.\u201d.<\/p>\n

 <\/p>\n

(b)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 after rule 44G of the principal rules, the following rule shall be inserted, namely.-<\/p>\n

 <\/p>\n

\u201cProcedure to deal with requests for bilateral or multilateral advance pricing agreements.<\/strong><\/p>\n

 <\/p>\n

44GA<\/strong>(1) Where a person has made request for a bilateral or multilateral <\/strong>advance pricing agreement in an application filed in Form No. 3 CED in accordance with rule 10 I, the request shall be dealt with subject to provisions of this rule.<\/p>\n

 <\/p>\n

(2)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The process for bilateral or multilateral advance pricing agreement shall not be initiated unless the associated enterprise situated outside India has initiated process of advance pricing agreement with the competent authority in the other country.<\/p>\n

 <\/p>\n

(3)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The competent authority in India shall, on intimation of request of the applicant for a bilateral or multilateral agreement, consult and ascertain willingness of the competent authority in other country or countries, as the case may be, for initiation of negotiation for this purpose.<\/p>\n

 <\/p>\n

(4)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case of willingness of the competent authority in other country or countries, as the case may be, the competent authority in India shall enter into negotiation in this behalf and endeavour to reach a set of terms which are acceptable to the competent authority in India and the competent authority in the other country or countries, as the case may be.<\/p>\n

 <\/p>\n

(5)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case of an agreement after consultation, the competent authority in India shall formalise a mutual agreement procedure arrangement<\/p>\n

 <\/p>\n

Page 12 of 28<\/p>\n<\/div>\n

 <\/p>\n

\n

 <\/p>\n

with the competent authority in other country or countries, as the case may be, and intimate the same to the applicant.<\/p>\n

 <\/p>\n

(6)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In case of failure to reach agreement on such terms as are mutually acceptable to parties mentioned in sub-rule 4, the applicant shall be informed of the failure to reach an agreement with the competent authority in other country or countries.<\/p>\n

 <\/p>\n

(7)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The applicant shall not be entitled to be part of discussion between competent authority in India and the competent authority in the other country or countries, as the case may be; however the applicant can communicate or meet the competent authority in India for the purpose of entering into an advance pricing agreement.<\/p>\n

 <\/p>\n

(8)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The applicant shall convey acceptance or otherwise of the agreement within thirty days of it being communicated.<\/p>\n

 <\/p>\n

(9)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The applicant, in case the agreement is not acceptable may at its option continue with process of entering into an advance pricing agreement without benefit of mutual agreement process or withdraw application in accordance with rule 10J.\u201d.<\/p>\n

 <\/p>\n

(c)\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 In Appendix-II of the principal rules, after Form No. 3 CEB, the following Forms shall be inserted, namely: –<\/p>\n

 <\/p>\n

\u201cForm No. 3CEC<\/strong><\/p>\n

 <\/p>\n

(See sub-rule (2) of rule 10 H) Application for a pre-filing meeting<\/strong><\/p>\n

 <\/p>\n

To,<\/p>\n

 <\/p>\n

The Director General of Income Tax (International Taxation) New Delhi.<\/p>\n

 <\/p>\n

 <\/p>\n

Sir\/Madam,<\/p>\n

 <\/p>\n

I propose to apply for an Advance Pricing Agreement. In this regard I give below the necessary particulars for a pre-filing meeting:<\/p>\n

 <\/p>\n

    \n
  1. Particulars of the applicant:<\/li>\n<\/ol>\n

     <\/p>\n

      \n
    1. Full name of the applicant:<\/li>\n<\/ol>\n

       <\/p>\n

        \n
      1. Permanent account number:<\/li>\n<\/ol>\n

         <\/p>\n

          \n
        1. Address of the applicant:<\/li>\n<\/ol>\n

           <\/p>\n

           <\/p>\n

           <\/p>\n

          Page 13 of 28<\/p>\n<\/div>\n

           <\/p>\n

          \n

           <\/p>\n

          d. Location(s) of the business enterprises in India:<\/p>\n

           <\/p>\n

           <\/p>\n

          e. Details of applicant authorized representative:<\/p>\n

           <\/p>\n

            \n
          1. Address for communication:<\/li>\n<\/ol>\n

             <\/p>\n

             <\/p>\n

              \n
            1. Email id and the contact numbers of the person with whom correspondence is required to be made:<\/li>\n<\/ol>\n

               <\/p>\n

                \n
              1. The global structure of the applicant\u201fs group and the industry in which it operates:<\/li>\n<\/ol>\n

                 <\/p>\n

                  \n
                1. Names\u00a0\u00a0 of\u00a0\u00a0 all\u00a0\u00a0 the\u00a0\u00a0 associated\u00a0\u00a0 enterprises<\/li>\n<\/ol>\n

                   <\/p>\n

                  (AE\u201fs) with which international transactions have been either undertaken or proposed to be undertaken:<\/p>\n

                   <\/p>\n

                   <\/p>\n

                    \n
                  1. Name of country(s) in which (AE\u201fs) is located:<\/li>\n<\/ol>\n

                     <\/p>\n

                     <\/p>\n

                      \n
                    1. Business model and overview of the applicant\u201fs business operations in prior 3 years:<\/li>\n<\/ol>\n

                       <\/p>\n

                       <\/p>\n

                        \n
                      1. Functional and Risk Profile of the applicant and associated enterprises:<\/li>\n<\/ol>\n

                         <\/p>\n

                         <\/p>\n

                          \n
                        1. a. Details of all the international transactions proposed to be covered in the APA:<\/li>\n<\/ol>\n

                           <\/p>\n

                          b. Value of such international transactions covered under Transfer Pricing audit in prior 3 years:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          Page 14 of 28<\/p>\n<\/div>\n

                           <\/p>\n

                          \n

                           <\/p>\n

                          8. Details of all other international transactions not proposed to be covered in the APA:<\/p>\n

                           <\/p>\n

                          9.\u00a0\u00a0 Type of APA proposed:<\/p>\n

                           <\/p>\n

                          a.\u00a0 Are you proposing a unilateral APA?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes\/ No<\/p>\n

                           <\/p>\n

                          b.\u00a0 If yes the reasons for the same:<\/p>\n

                           <\/p>\n

                          c.\u00a0 Are you proposing a Bilateral or<\/p>\n

                           <\/p>\n

                          Multilateral APA?\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Yes\/ No<\/p>\n

                           <\/p>\n

                          d.\u00a0 If\u00a0\u00a0 yes,\u00a0\u00a0 provide\u00a0\u00a0 the\u00a0\u00a0 names\u00a0\u00a0 of\u00a0\u00a0 the<\/p>\n

                           <\/p>\n

                          country (ies) in which the associated<\/p>\n

                           <\/p>\n

                          enterprises are located:<\/p>\n

                           <\/p>\n

                          10. Number\u00a0\u00a0\u00a0\u00a0 of\u00a0\u00a0\u00a0\u00a0 years\u00a0\u00a0\u00a0 for\u00a0\u00a0\u00a0 which\u00a0\u00a0\u00a0\u00a0 APA\u00a0\u00a0\u00a0 is<\/p>\n

                           <\/p>\n

                          proposed to be applied:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          11. Proposed transfer pricing methodology to be used with supporting documentation:<\/p>\n

                           <\/p>\n

                          12. Identification of third party comparable:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          13. Details of arm\u201fs length price or profit level indicator:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          14. Details of critical assumptions, that the applicant considers, may affect the business or the transfer pricing methodology:<\/p>\n

                           <\/p>\n

                          15. The history of the Competent Authority issues, requests, and settlements:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          16. History of transfer pricing audits, assessments and present status of appeals:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          17. Names and designation of the representatives who would be appearing before the authorities for pre-filing discussions:<\/p>\n

                           <\/p>\n

                           <\/p>\n

                           <\/p>\n

                          Page 15 of 28<\/p>\n<\/div>\n

                           <\/p>\n

                          \n

                          Any other relevant information:<\/p>\n

                           <\/p>\n

                          I declare that to the best of my knowledge and belief, the information furnished in the application is correct and truly stated.<\/p>\n

                           <\/p>\n

                          Yours faithfully,<\/p>\n

                          Place:<\/p>\n

                          Date:<\/p>\n

                           <\/p>\n

                          Applicant<\/p>\n

                           <\/p>\n

                           <\/p>\n

                          Notes:<\/p>\n

                           <\/p>\n

                            \n
                          1. The application must be filed in triplicate.<\/li>\n<\/ol>\n

                             <\/p>\n

                              \n
                            1. If the space provided for answering any item in the application is found insufficient, separate enclosures may be used for the purpose. These enclosures should be signed by the person authorised to sign the application.<\/li>\n<\/ol>\n

                               <\/p>\n

                                \n
                              1. In case the pre-filing meeting is requested on an anonymous basis, no names of the applicant or associated enterprises are to be given.<\/li>\n<\/ol>\n

                                 <\/p>\n

                                  \n
                                1. With regard to details of all the international transactions proposed to be covered in the APA, please furnish agreements with associated enterprises, if any, relating to the international transactions along with the reasons for covering these transactions in APA.<\/li>\n<\/ol>\n

                                   <\/p>\n

                                    \n
                                  1. In case the applicant is applying for a Bilateral or Multilateral APA, the applicant must state whether India has an existing comprehensive DTAA with such country (ies). It may also be verified whether such country (ies) has APA program in place?<\/li>\n<\/ol>\n

                                     <\/p>\n

                                      \n
                                    1. In case the pre-filing request is on anonymous basis, details of the representatives of the applicant who would be appearing before the authorities for pre-filing discussions must be furnished.<\/li>\n<\/ol>\n

                                       <\/p>\n

                                      Form No. 3 CED<\/strong><\/p>\n

                                       <\/p>\n

                                      (See sub-rule (1) of rule 10 I) Application for an Advance Pricing Agreement<\/strong><\/p>\n

                                      To,<\/p>\n

                                       <\/p>\n

                                      The Competent Authority of India or<\/p>\n

                                       <\/p>\n

                                      Director General of Income Tax (International Taxation) New Delhi<\/p>\n

                                       <\/p>\n

                                      Sir\/Madam,<\/p>\n

                                       <\/p>\n

                                       <\/p>\n

                                      Page 16 of 28<\/p>\n<\/div>\n

                                       <\/p>\n

                                      \n

                                       <\/p>\n

                                      This is to state that …………………………(Name of the Applicant)……wishes to negotiate an APA with the Central Board of Direct Taxes. I am submitting herewith the necessary particulars hereunder:<\/p>\n

                                       <\/p>\n

                                        \n
                                      1. I.\u00a0\u00a0 <\/strong>General <\/strong><\/li>\n<\/ol>\n

                                        \u00a0<\/strong><\/p>\n

                                          \n
                                        1. Particulars of the applicant:<\/li>\n<\/ol>\n

                                           <\/p>\n

                                            \n
                                          1. Full name of the applicant:<\/li>\n<\/ol>\n

                                             <\/p>\n

                                              \n
                                            1. Permanent Account Number:<\/li>\n<\/ol>\n

                                               <\/p>\n

                                                \n
                                              1. Address of the applicant:<\/li>\n<\/ol>\n

                                                 <\/p>\n

                                                  \n
                                                1. Address for communication:<\/li>\n<\/ol>\n

                                                   <\/p>\n

                                                   <\/p>\n

                                                    \n
                                                  1. Location(s) of the business enterprises in India:<\/li>\n<\/ol>\n

                                                     <\/p>\n

                                                     <\/p>\n

                                                      \n
                                                    1. Email id and the contact numbers of the person with whom correspondence is required to be made:<\/li>\n<\/ol>\n

                                                       <\/p>\n

                                                        \n
                                                      1. Names and designation of the authorised representatives who would be appearing before the authorities for negotiations of the APA:<\/li>\n<\/ol>\n

                                                         <\/p>\n

                                                          \n
                                                        1. Whether pre-filing discussions were sought by the applicant? If yes, please furnish:<\/li>\n<\/ol>\n

                                                           <\/p>\n

                                                           <\/p>\n

                                                            \n
                                                          1. Date of application for pre-filing meeting:<\/li>\n<\/ol>\n

                                                             <\/p>\n

                                                              \n
                                                            1. Date of pre-filing meeting(s) with the APA Team:<\/li>\n<\/ol>\n

                                                               <\/p>\n

                                                               <\/p>\n

                                                                \n
                                                              1. Name(s) of the Associated Enterprises with whom the APA is requested for:<\/li>\n<\/ol>\n

                                                                 <\/p>\n

                                                                 <\/p>\n<\/div>\n

                                                                 <\/p>\n

                                                                \n\n\n\n\n\n\n\n\n\n\n\n
                                                                \n

                                                                4.<\/p>\n<\/td>\n

                                                                		Name\u00a0\u00a0 of\u00a0\u00a0 the\u00a0\u00a0 country(ies)\u00a0\u00a0 in\u00a0\u00a0 which\u00a0\u00a0 the<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
                                                                 <\/td>\nassociated\u00a0\u00a0 enterprises\u00a0\u00a0 mentioned\u00a0\u00a0 in\u00a0\u00a0 (3)<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
                                                                 <\/td>\nabove are located:<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
                                                                \n

                                                                5.<\/p>\n<\/td>\n

                                                                		a. Are you applying for a Unilateral,<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
                                                                 <\/td>\nBilateral or Multilateral APA:<\/td>\n\n

                                                                Unilateral\/Bilateral\/Multilateral<\/p>\n<\/td>\n<\/tr>\n

                                                                 <\/td>\nb. If you are applying for a Bilateral or Multilateral<\/td>\n <\/td>\n<\/tr>\n
                                                                 <\/td>\nAPA, have the Associated Enterprises applied for<\/td>\n\n

                                                                Yes\/ No<\/p>\n<\/td>\n<\/tr>\n

                                                                 <\/td>\nAPA with the Competent Authority in the<\/td>\n <\/td>\n <\/td>\n<\/tr>\n
                                                                 <\/td>\ncountry of its residence?:<\/td>\n <\/td>\n <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                                                                 <\/p>\n

                                                                  \n
                                                                1. If yes, enclose evidence of furnishing such application with the other Competent Authority:<\/li>\n<\/ol>\n

                                                                   <\/p>\n

                                                                    \n
                                                                  1. If no, by what date the application is proposed to be furnished to the other Competent Authority:<\/li>\n<\/ol>\n

                                                                     <\/p>\n

                                                                      \n
                                                                    1. If the application is for Unilateral APA and it involves international transactions with an entity located in a jurisdiction with which India has an agreement under section 90 or 90A of the Act for avoidance of double taxation, kindly provide explanation for why the request is not for bilateral or multilateral APA.<\/li>\n<\/ol>\n

                                                                       <\/p>\n

                                                                      6.\u00a0\u00a0 Particulars of Fee paid by the applicant:\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Amount in Rs.<\/p>\n

                                                                       <\/p>\n

                                                                      Challan No: Dated:<\/p>\n

                                                                       <\/p>\n

                                                                        \n
                                                                      1. Period of APA proposed along with the date from which APA is sought to be applicable:<\/li>\n<\/ol>\n

                                                                         <\/p>\n

                                                                          \n
                                                                        1. Details of the international transactions proposed to be covered in the APA (Description of the property or services to which the proposed APA relates):<\/li>\n<\/ol>\n

                                                                           <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

                                                                          Vide Notification No. 36 of 2012 dated 30.08.2012, the CBDT has inserted Rules 10F to 10T to introduce the \u201cAdvance Pricing Agreement Scheme”.<\/p>\n

                                                                          Read more ›<\/a><\/div>\n

                                                                          <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1,7],"tags":[],"class_list":["post-2081","post","type-post","status-publish","format-standard","hentry","category-all-information","category-others"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/2081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/comments?post=2081"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/posts\/2081\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/media?parent=2081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/categories?post=2081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/info\/wp-json\/wp\/v2\/tags?post=2081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}