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The Central Board of Direct Taxes (CBDT) has given more time to taxpayers to apply for ‘roll back’ facility under the advance pricing agreements (APA).
Applications for roll back facility could now be made up to June 30 this year, the CBDT said in a statement here.
The CBDT had in mid-March introduced the facility of ‘roll back’ while mandating that the applications need to be filed before March 31 this year.
However, CBDT has today (March 31) extended the last day for receiving applications to June 30.
Under the rollback facility, the pricing agreed in an APA (advance pricing agreements) for future transactions (maximum for five years) may be applied to transactions for previous four years in specified circumstances.
Commenting on the latest CBDT move, S.P.Singh, Senior Director, Deloitte in India, said this is a positive development towards reducing litigation as it will give additional time for filing of application for ‘roll back’ facility.
An APA is an agreement between a taxpayer and the tax authority concerning the transfer pricing method and the rate applicable to the taxpayers’ inter-company transactions, and normally covers multiple years.
The Finance Minister Arun Jaitley had, in his maiden Budget in July last year announced that the facility of ‘roll back’ would be extended under the APA scheme.
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