APA (Advance Pricing Agreement)
Advance Pricing Agreement between the tax payer and tax authority determines, in advance controlled transactions, an appropriate set of methods, comparables and adjustments thereto, critical assumptions as to future events for the determination of transfer pricing for the transactions among the related parties over a fixed period of time. Advance Price Agreements would be unilateral, bilateral or multilateral, and applicable up to 3 years.
The agreement will be binding for both the tax administration and the taxpayer and thereby will provide certainty for both parties.
