Government signs 11 unilateral Advance Pricing Agreements (APAs)

Government signs 11 unilateral Advance Pricing Agreements (APAs) 

The Central Board of Direct Taxes signed 11 unilateral APAs on 28th March, 2016. With this signing, India has entered into 59 bilateral and/or unilateral APAs. The Advance Pricing Agreement (APA) programme was introduced by the Finance Act, 2012 to provide a predictable and non-adversarial tax regime and to reduce litigation in the Indian transfer pricing regime. 50 of these agreements have been signed in the current financial year. The agreements cover a range of international transactions, including corporate guarantees, royalty, software development services, IT enabled services and trading. The agreements pertain to different industrial sectors like telecom, media, automobiles, IT services, etc. Some of the agreements have rollback provisions and provide certainty to the taxpayers for 9 years with regard to the covered international transactions. 

Rollback provisions in APAs were introduced in the July 2014 Budget to provide certainty on the pricing of international transactions for 4 years (rollback years) preceding the first year from which APA becomes applicable. With the notification of Rollback rules in March 2015, the taxpayer has been provided the option to choose certainty in transfer pricing matters with the Government for a total of nine years (5 future years and 4 prior years). 

Since the notification of the APA scheme on 30.08.2012, approximately 580 applications for APAs have been received and about half of these contain a request for the Rollback provisions. The number of applications is indicative of the wide international and national appreciation of the India’s APA programme’s ability to address complex transfer pricing issues in a fair and transparent manner.


Finance Minister Shri Arun Jaitley calls for important contribution by banks in achieving higher growth rate; inaugurates Sydney Branch of Union Bank of India 

The Union Finance Minister Shri Arun Jaitley said that the banks have to play an important role in achieving the higher growth rate in the country. He said that the banks would be provided sufficient funds to recapitalise them. The Finance Minister was speaking after inaugurating the Sydney Branch of the Union Bank of India in Sydney, Australia today. The Finance Minister Shri Jaitley is on a four day official visit to Australia. OAs part of the first leg of his Australia visit, the Finance Minister Shri Jaitley arrived in Sydney today. The inauguration was done by Shri Arun Jaitley, Finance Minister of India in the presence of High Commissioner of India in Australia Shri Navdeep Suri and Shri Arun Tiwari, Chairman & Managing Director, Union Bank of India among others. 

The Union Bank of India is the 5th largest Nationalized Bank in India. Established in the year 1919, the Bank has grown to a business mix of Rs. 5,89,889 crore, with deposits of Rs 3,27,412 crore and advances of Rs 2,62,477 crore, as of December 2015. Union Bank offers products and services for Retail, Agriculture, MSME, Large Corporate and NRI customers through 4153 branches, which includes 3 overseas branches and 6999 ATMs, dedicated call centre operating 24*7 in 9 languages and alternative channels like internet banking and mobile banking. 

The Union Bank of India recently launched Mobile Wallet “Digipurse” with features of Bill Payment, DTH Recharge, Mobile Recharge, Online Shopping through virtual card and fund transfer facilities through IMPS, in addition to launch of Union Selfie and online account opening. These add to already comprehensive digital offerings through various modes. 

Finance Minister Shri Arun Jaitley visits Sydney Campus of S. P. Jain School of Global Management ; India expected to achieve the higher growth rate of 8% and above in coming years 

The Union Finance Minister Shri Arun Jaitley visited today the Sydney Campus of S P Jain School of Global Management and delivered a Lecture on ‘Reimagining India’. 

Stating that India continues to be one of the fastest growing economies in the world, the Finance Minister said that India is yet to realise its full potential of growth. He said that even during the global economic turmoil in the past, India has always showed resilience. Mentioning the significant improvement in the macroeconomic stability, as reflected in low levels of inflation, contained fiscal deficit (FD) and Current Account Deficit (CAD), he said that this has been in spite of uncertain global economic situation. 

The Finance Minister Shri Jaitley further said that in the last 22 months, the present Government has undertaken various initiatives and reforms. He said that the Government has opened India's economy for investment in different sectors. The Government is working towards ease of doing business, making process transparent and speeding-up the stalled projects. On tax front, the Government is working towards rationalisation of both direct and Indirect tax regime. The Government has undertaken measures to boost the growth by increasing public investment, expanding financial inclusion, streamlining governance and improving business environment through reforms in policies and regulation. 

Highlighting the impressive strides taken by Indian economy backed by reforms in key areas, especially the focus on following the path of fiscal prudence and price stability, the Finance Minister mentioned that all these factors have stimulated and stabilised the economy and prepared ground for growth rates of 8 % or higher in the next couple of years. 

Earlier, Shri Mr Nitish Jain, President, SP Jain School welcomed the Finance Minister and briefed the audience about the history and courses run by the school. 

The event was attended among others by the Indian High Commissioner in Australia, Mr Navdeep Suri, Australian High Commissioner in India Ms Harinder Sidhu, Faculty and students of S.P. Jain Global School, academician, media, businessperson and members of Indian diaspora. 


Finance Minister Shri Arun Jaitley arives in Sydney on four day Official visit to Australia; holds Meeting with Premier of New South Wales Mr Mike Baird; Calls for Foreign Direct Investment(FDI) especially in Infrastructure and Manufacturing Sector 

The Union Finance Minister Shri Arun Jaitley said that India needs lot of Foreign Direct Investment (FDI) especially in manufacturing and infrastructure sector. He said that State Governments too are taking keen interest and competing among themselves to have foreign investments in their respective States. They are organising Investment Summits in this regard, Shri Jaitley added. The Finance Minister said that present Government has opened various sectors for FDI including railways and defence among others. He invited businesses in NSW to invest and make in India. He said that we want foreign sovereign wealth funds to be part of NIIF, pension and insurance funds in India. 

The Finance Minister Shri Jaitley was making the Opening remarks during his meeting with the Premier of New South Wales (NSW) Mr Mike Baird in Sydney today. This was the First official engagement of the Finance Minister Shri Jaitley after arriving in Sydney on a four day Official visit to Australia today morning. 

The Finance Minister Shri Jaitley also highlighted the various initiatives and reforms measures undertaken by the present Government to boost the Indian economy which is growing at the rate of above 7.5%. 

Speaking on the occasion, Mr Baird expressed keen interest about the investment opportunities in India particularly in the infrastructure sector. He highlighted the importance of communicating the information to larger business community in Australia to enable them to understand the opportunities available in India. He also informed the Finance Minister that he intends to visit India during the next Vibrant Gujarat which is planned to be held in India in January 2017.    

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