Record 125 Advance Pricing Agreements Signed By CBDT In FY 2023-24

The Central Board of Direct Taxes has signed record number of 125 advance pricing agreements (APAs) in the financial year 2023-24. In a release, The Department of Revenue said that it also represents a 31 percent increase compared to the 95 APAs signed during the preceding financial year. During financial year 2023-24 CBDT has also signed the maximum number of Bilateral APAs in any financial year till date.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of



transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for a maximum of five future years. The signing of bilateral APAs additionally provides the taxpayers with protection from any anticipated or actual double taxation.

The APA programme has contributed significantly to the Government of India’s mission of promoting ease of doing business.