The Central Board of Direct Taxes (CBDT) entered into a Bilateral Advance Pricing Agreement (BAPA) with Indian subsidiary of a Japanese trading company. What does Advance Pricing Agreement means?
It is an agreement between tax authorities of two or more countries
Incorrect AnswerIt is an agreement between corporate entities of two different countries
Incorrect AnswerIt is an agreement between corporate entities of one country
Incorrect AnswerIt is an agreement between a taxpayer and a tax authority
Correct AnswerExplanation:
An advance pricing agreement (APA) is an ahead-of-time agreement between a taxpayer and a tax authority on an appropriate transfer pricing methodology (TPM) for a set of transactions at issue over a fixed period of time
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By: Abhipedia