ITeS & Software Development sectors undertake maximum APAs
Q. Which two sectors have taken maximum APAs with tax authorities?- Published on 01 Dec 15a. Information Technology enabled Services and Software Development
b. Defence and manufacturing
c. Telecom and manufacturing
d. None of the above
ANSWER: Information Technology enabled Services and Software Development
This Advance Pricing Agreements in India are for reducing litigation and operating smoothly while countering tricky transfer pricing cases, officials said.The Income Tax department has signed 31 such agreements so far with different sectors of the economy. CBDT is the apex policy making body of the IT department. An Advance Pricing Agreement is signed between a taxpayer and the tax department on an appropriate transfer pricing methodology for determining the value of assets and resulting taxes on intra-group overseas transactions.
