Budget 2013: OPPI suggests option to rollback APA

NEW DELHI: The Organisation of Pharmaceutical Producers of India ( OPPI) has recommended that the option of rollback of an Advance Pricing Arrangement (APA) should also be introduced in the APA legislations in Budget 2013.

OPPI welcomed move to introduce much needed alternative of APA for the Central Board of Direct Taxes to be empowered to enter into APA with the taxpayers to determine the Arm’s Length Price (‘ALP’) or determine the manner to determine the ALP of certain international transactions.

It, however, said that current guidelines do not provide for roll back of APAs i.e., its applicability to past open litigation. Further, the guidelines provide for parallel assessment proceedings pending conclusion of APAs.

This may result in duplication of time and effort of TPO and assessee, once APA is concluded, added OPPI.

Hence, OPPI suggested that the option of rollback of an APA should also be introduced in the APA legislations and also the transfer pricing proceedings should be allowed to be kept in abeyance till the conclusion of the APA and appropriate amendments can be made to exclude time taken concluding the APA, from the time lines for transfer pricing proceedings.