Current Affairs 4 April 2019 Digest 1: CBDT signs 18 APAs; NuGen Mobility Summit 2019
Story 1: CBDT signs 18 APAs
The Central Board of Direct Taxes (CBDT) entered into 18 Advance Pricing Agreements (APAs), including 3 Bilateral APAs (BAPAs), in March 2019.
Total number of APAs entered till now
With the signing of these APAs, the Indian Advance Pricing Agreement regime moved forward with total number of APAs entered into by the CBDT in the year 2018-19 stands at 52, including 11 BAPAs.
The total number of APAs entered into by the CBDT so far stands at 271, including 31 BAPAs.
Highlights of the APAs signed
All these 18 APAS cover international transactions in following sectors:
• Contract manufacturing
• Provision of software development services
• Back office engineering support service
• Provision of back office (ites) support services
• Provision of marketing support services
• Payment of royalty for use of technology and brand
• Payment of interest
The BAPAs and Unilateral APAs (UAPAs) entered in March 2019 belong to different sectors and sub-sectors of the economy like anti-friction bearings, risk management solutions platforms, IT/ITeS, ATMs and institutional cleaning products, etc.
The BAPAs entered into during March 2019 were with Australia, Netherlands and the USA.
What do you mean by Advance Pricing Agreement (APA)?
• An APA is an agreement between a taxpayer and the tax authority determining the Transfer Pricing methodology for pricing the tax payer’s international transactions for future years.
Note: Transfer Pricing is the setting of the price for goods and services sold between related legal entities within an enterprise.
• An APA provides certainty with respect to the tax outcome of the tax payer’s international transactions.
• An APA can be one of the three types - unilateral, bilateral and multilateral.
• A Unilateral APA is an APA that involves only the taxpayer and the tax authority of the country where the taxpayer is located.
• Bilateral APA (BAPA) is an APA that involves the tax payer, associated enterprise (AE) of the taxpayer in the foreign country, tax authority of the country where the taxpayer is located and the foreign tax authority.
• Multilateral APA (MAPA) is an APA that involves the taxpayer, two or more AEs of the tax payer in different foreign countries, tax authority of the country where the taxpayer is located and the tax authorities of AEs.
• The progress of the APA Scheme is an indication of the government’s resolve of fostering a non-adversarial tax environment.
• The Indian APA program has been appreciated in India and across the world for being able to address complex transfer pricing issues in a fair and transparent manner.
Story2: NuGen Mobility Summit 2019 to be held in November
The NuGen Mobility Summit 2019 will be held during November 27 – 29, 2019 at Manesar, National Capital Region. The Summit will be organised by the International Centre for Automotive Technology (ICAT).
The Summit will be organised in association with SAE NIS, SAE INDIA, SAE International, NATRiP, DIMTS, Department of Heavy Industry under the Union Ministry of Heavy Industries and Public Enterprises, Union Ministry of Road Transport and Highways, Society of Indian Automobile Manufacturers (SIAM) and Automotive Component Manufacturers Association of India (ACMA).
The objective behind the Summit is to share new ideas, global experiences, innovations and future technology trends for faster adoption, and development of advanced automotive technologies for a smarter and greener future.
It will help in building a platform for bringing together all stakeholders in the automotive industry to understand global advancements in technologies.
• More than 2500 participants and over 250 exhibitors are expected to take part in the Summit.
• Experts working with leading international scientific organisations and testing laboratories from various countries like USA, Europe, Japan and other Asian countries will also participate in the event and share their experiences.
• It will bring together the automotive professionals, researchers, academic experts, vehicle system suppliers, test equipment supplier, quality managers, and students from all over the world.
• It will witness track demonstrations, drive-touch-feel activity and lab demonstrations on upcoming vehicle technologies.
International Centre for Automotive Technology (ICAT) Manesar is a division of NATRIP Implementation Society (NATIS) under the Department of Heavy Industries, India.
It provides services for testing, validation, design and homologation of all categories of vehicles. It assists the automotive industry in adopting cutting edge technologies in vehicle evaluation and component development to ensure reliability, durability and compliance to the current and future regulations.