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Q12. Consider the following statements about Advance Pricing Agreement: 1. APA scheme endeavours to provide certainty to taxpayers in domain of transfer pricing by specifying methods of pricing and setting prices of international transactions in advance. 2. It helps in determining arm’s length price of international transactions in advance for max period of 5 future years. Which of the above statements are incorrect?

Answer»

Q12. Consider the following statements about Advance Pricing Agreement:

1. APA scheme endeavours to provide certainty to taxpayers in domain of transfer pricing by specifying methods of pricing and setting prices of international transactions in advance.

2. It helps in determining arm’s length price of international transactions in advance for max period of 5 future years.

Which of the above statements are incorrect?




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