Saturday, 1 September 2012

Simplified Note on Advance Pricing Agreement,



CBDT had recently issued a Notification No 36 dated August 30, 2012 in respect of  rules for Advance Pricing Agreement. A short note in this respect is given below.

01.              Application  for pre- filing consultation to me made to Director General of Income Tax (International Taxation) in Form No. 3CEC. 

02.              The APA Team then have pre-filing consultation with the applicant AR.

03.              Next Application to be made in Form 3CED along with requisite fees.

04.              The minimum fees is Rs. 10 Lakhs and maximum is Rs. 20 Lakhs which is no refundable.

05.              The applicant may withdraw his application by filing form no. 3CCE.

06.              The APA team then prepare the draft of agreement which is required to be entered by board on behalf of central government and a copy provided to commissioner having jurisdiction.

07.              The applicant also required to provide annual compliance report to APA Team in Form 3CEF.

08.              The TPO also required to do Compliance audit every year.

09.              The agreement entered by Board may be revised or  cancelled in future.

10.              Renewal of the agreement is the same procedure as for making new application.

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