Advance Pricing Agreements – A Big Step towards Certainty in the Uncertain World of Transfer Pricing

India recently introduced an advance pricing agreement (APA) programme marking a paradigm shift in the decade-old transfer pricing regime. It is hoped that APAs will, amongst others, eliminate the uncertainty associated with pending litigation, minimize risk, avoid the cost of disputes with the tax authorities right from the audit stage to the courts and so on. This article outlines the key features of the Indian APA programme, along with a discussion on global practices.