CBDT Signs Record 125 APAs; CCI Approves Key Acquisitions

Record 125 Advance Pricing Agreements Signed by CBDT in FY 2023-24, CCI Approves Key Acquisitions in Precious Metals and Industrial Sectors

In a significant development for India's tax landscape, the Central Board of Direct Taxes (CBDT) has set a new benchmark by signing a record 125 Advance Pricing Agreements (APAs) during the fiscal year 2023-24. These agreements, designed to provide certainty to taxpayers in transfer pricing matters, have marked a substantial increase of 31% compared to the previous year's signings, reflecting a growing confidence in the APA scheme.

Among these agreements, 86 are Unilateral APAs (UAPAs), while 39 are Bilateral APAs (BAPAs), constituting the highest number of APA signings in any financial year since the inception of the programme.

The surge in BAPAs, in particular, underscores India's commitment to fostering international tax cooperation. These agreements not only provide assurance to taxpayers but also contribute to promoting ease of doing business by offering protection against double taxation. With the latest signings, the total tally of APAs since the programme's inception has risen to 641, comprising 506 UAPAs and 135 BAPAs. This achievement is a testament to the effectiveness of the APA scheme in facilitating smoother tax compliance and reducing disputes in the realm of transfer pricing.

Furthermore, the CBDT's proactive approach in engaging with Indian taxpayers reflects the government's ongoing efforts to create a conducive environment for businesses, especially multinational enterprises (MNEs) with significant cross-border transactions. By providing clarity on pricing methods and determining the arm's length price of international transactions in advance for up to five future years, the APA programme offers a valuable tool for MNEs to plan their tax obligations effectively.

CCI Approves Key Acquisitions in Precious Metals and Industrial Sectors

In parallel news, the Competition Commission of India (CCI) has granted approval for two pivotal acquisitions, signaling notable developments in the precious metals and industrial sectors. The first approval involves the acquisition of stakes in PAMP Technologies (India) Private Limited and MMTC PAMP India Private Limited by PAMP Ventures SA. This strategic move, facilitated by MKS PAMP Group Limited, aims to streamline operations and enhance the position of the entities involved. While PAMP Technologies specializes in providing IT services within the MKS PAMP Group, MMTC PAMP is renowned for its expertise in gold and silver refining and product sales. The detailed order from the CCI is awaited, indicating a significant consolidation within the precious metals industry.

CCI Greenlights Additional Shareholding Acquisition in Thyssenkrupp Industries India

In another approval, the CCI has greenlit the acquisition of additional shareholding in Thyssenkrupp Industries India Private Limited by Protos Engineering Company Private Limited and Paharpur Cooling Towers Limited. Protos, acting as a sole selling agent for Thyssenkrupp Industries India, seeks to strengthen its position in the industrial equipment sector through this acquisition. Meanwhile, Paharpur Cooling Towers Limited, known for its expertise in industrial cooling systems, diversifies its portfolio with this strategic move. The consolidation of shareholding signifies a bolstering of industrial capabilities and market presence, paving the way for enhanced services and offerings in the industrial sector.

Overall, these acquisitions underscore the dynamic nature of India's business landscape, characterized by strategic consolidations and expansions across diverse sectors. With regulatory approvals in place, the stage is set for these entities to capitalize on synergies and drive growth in their respective domains.