Income Tax (10th Amendment) Rules inserting Advance Pricing Agreement Scheme:

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Vide its notification no. S.O.2005(E) dated 30th August 2012, Central Board of Direct Taxes has passed the Income Tax (10th Amendment) Rules, 2012, thereby introducing the provisions related to Advance Pricing Agreement Scheme by insertion of a new rule in the Act. The rule provides that the provisions of Advance Pricing Agreement Scheme shall be applicable to persons who have undertaken an international transaction or contemplating to undertake an international transaction.

It provides that every person proposing to enter into an agreement under the rules shall make a request for pre filing consultation. It provides for the provisions for withdrawal of application and the procedure to be followed in the processing of the application. It also provides the terms which can be included in the agreement. It provides provisions for the revision, cancellation and review of the agreement.

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