Signing of Bilateral Advance Pricing Agreement by CBDT

Question: Who is the chairperson of the Central Board of Direct Taxes (CBDT)?
(a) Rani Singh Nair
(b) Atulesh Jindal
(c) Anurag Thakur
(d) None of These
Ans: (a)
Related facts:

• The Central Board of Direct Taxes (CBDT) entered into a Bilateral Advance Pricing Agreement (APA) on 2nd August, 2016 with the Indian subsidiary of a Japanese trading company.
• This is the first Bilateral Advance Pricing agreement with a Japanese company having a “Rollback” provision in it
• Overall, it is fourth bilateral APA signed by CBDT.
• Signing of this bilateral APA is an important step towards ascertaining certainty in transfer pricing matters of multinational company cases and dispute resolution.
• The APA Scheme was introduced in the Income-tax Act in 2012 and the “Rollback” provisions were introduced in 2014.
• The scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and setting the prices of international transactions in advance.
• The progress of the APA Scheme strengthens the Government’s mission of fostering a non-adversarial tax regime.
• The CBDT expects more APAs to be concluded and signed in the near future.

Reference:
http://pib.nic.in/newsite/PrintRelease.aspx?relid=148327