CBDT Signs Record 219 Advance Pricing Agreements
ECONOMY & POLICY

CBDT Signs Record 219 Advance Pricing Agreements

The Central Board of Direct Taxes (CBDT) has entered into a record 219 Advance Pricing Agreements (APAs) in FY 2025–26, taking the total since inception to 1,034. The total comprises 750 Unilateral APAs and 284 Bilateral APAs. The annual figure is the highest since the scheme began and follows 174 APAs in the prior year and 125 APAs in the year before.

This year CBDT concluded 84 bilateral APAs, surpassing the previous record of 65, and these were completed through mutual agreements with 13 treaty partners including the United States, the United Kingdom, Japan and Singapore. India also recorded its first bilateral APAs with France, Ireland, Indonesia and Sweden, expanding international cooperation.

The APA Scheme enables taxpayers to determine transfer pricing methods and arm's length prices for international transactions in advance for up to five years, and bilateral agreements provide protection against double taxation. Safe Harbour Rules offer a faster, lower-cost route to transfer pricing certainty and cover twelve transaction categories including information technology services and contract research and development.

The Finance Act 2026 consolidated multiple technology service segments into a single Information Technology Services category and set a uniform margin of 15.5 per cent, streamlining applicability. Amendments introduced a more system-driven and automated approach to reduce detailed scrutiny and administrative interface. The combined measures are expected to improve efficiency, transparency and compliance.

The Finance Act 2026 raised the Safe Harbour eligibility threshold from Rs three billion (bn) to Rs 20 billion (bn), expanding the regime for larger taxpayers. Authorities anticipate that the higher threshold and automation will enhance ease of doing business by reducing time and cost burdens on compliant entities. CBDT stated that taxpayers remain key stakeholders in the APA programme's implementation.

The Central Board of Direct Taxes (CBDT) has entered into a record 219 Advance Pricing Agreements (APAs) in FY 2025–26, taking the total since inception to 1,034. The total comprises 750 Unilateral APAs and 284 Bilateral APAs. The annual figure is the highest since the scheme began and follows 174 APAs in the prior year and 125 APAs in the year before. This year CBDT concluded 84 bilateral APAs, surpassing the previous record of 65, and these were completed through mutual agreements with 13 treaty partners including the United States, the United Kingdom, Japan and Singapore. India also recorded its first bilateral APAs with France, Ireland, Indonesia and Sweden, expanding international cooperation. The APA Scheme enables taxpayers to determine transfer pricing methods and arm's length prices for international transactions in advance for up to five years, and bilateral agreements provide protection against double taxation. Safe Harbour Rules offer a faster, lower-cost route to transfer pricing certainty and cover twelve transaction categories including information technology services and contract research and development. The Finance Act 2026 consolidated multiple technology service segments into a single Information Technology Services category and set a uniform margin of 15.5 per cent, streamlining applicability. Amendments introduced a more system-driven and automated approach to reduce detailed scrutiny and administrative interface. The combined measures are expected to improve efficiency, transparency and compliance. The Finance Act 2026 raised the Safe Harbour eligibility threshold from Rs three billion (bn) to Rs 20 billion (bn), expanding the regime for larger taxpayers. Authorities anticipate that the higher threshold and automation will enhance ease of doing business by reducing time and cost burdens on compliant entities. CBDT stated that taxpayers remain key stakeholders in the APA programme's implementation.

Next Story
Infrastructure Urban

Narayanan G Appointed CEO of Athaang Infrastructure

Athaang Infrastructure Private Limited has appointed Mr Narayanan G as its Chief Executive Officer. He brings over 25 years of leadership experience in infrastructure investments, with more than $3 billion in capital deployment across roads, ports, logistics, energy and healthcare.Before joining Athaang, he served as Partner and Head – Transportation at IDFC Alternatives / Global Infrastructure Partners India. In this role, he contributed across the investment lifecycle, including fundraising, deal origination, portfolio management and successful exits.Mr Narayanan has also been involved in ..

Next Story
Equipment

Herrenknecht TBM Cleared for Mumbai Water Tunnel Project

Afcons Infrastructure, a Shapoorji Pallonji Group company, has cleared the factory acceptance tests for a Herrenknecht Gripper tunnel boring machine (TBM) with a diameter of 5.33 m. The machine will be deployed for the 7.2 km Bhiwandi–Thane water tunnel project connecting Kasheli to Mulund (Bhiwandi to Octroi Naka).The project is expected to strengthen Mumbai’s existing water transport network and help increase fresh water supply for millions of residents. Designed for hard rock excavation, the Gripper TBM is built for high performance, precision and reliability.The entire 7.2 km tunnel dr..

Next Story
Infrastructure Transport

Sector 51-52 Metro skywalk in Noida remains shut despite being ready for over a year

Thousands of commuters travelling between Delhi Metro Rail Corporation’s (DMRC) Sector 52 station and Noida Metro Rail Corporation’s (NMRC) Sector 51 station continue to face daily inconvenience as the 300-metre air-conditioned skywalk connecting the two stations remains closed, despite being completed over a year ago, according to a report.The Noida Metro Rail Corporation built the foot overbridge to enable a seamless interchange between the Delhi Metro and Noida Metro networks. However, pending finishing work and a structural obstruction have delayed its opening.Krishna Karunesh, Chief E..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement