Advance Pricing Agreements: The Way Forward for India

This article critically examines the importance attached to the introduction of Advance Pricing Agreements (APAs) in India under the upcoming Direct Taxes Code. After evaluating the types, constituents, and procedure of an APA and comparing the international standards adopted by many countries, the authors try to highlight the best possible APA mechanism that can best serve the needs of India-related transactions. Thus, the authors try to highlight the modifications required in the provision related to APA under the Direct Taxes Code, which will lead to an effective implementation of the APA programme.