Acceptance/Rejection of Application of an Advance Pricing Agreement [ Rule 10K ] - International Taxation - Income Tax

Acceptance/Rejection of Application of an Advance Pricing Agreement [ Rule 10K ] Preliminary processing of application Preliminary processing application of the APA application shall be carried out in accordance of with Rule 10K. Every application filed in Form No. 3CED shall be complete in all respects and accompanied by requisite documents. In case application is defective or if any relevant document is not attached (and the defect is not removed within the time allowed), or the application is not in accordance with understanding reached in pre filing consultation as per Rule 10H , the application may be rejected after providing an opportunity of being heard to the applicant. Fee will be refunded in case the application is rejected. However, the application shall not be rejected in any Other circumstance. [ Rule 10K(1) (5) ] Rejection of application If any defect is noticed in the application in Form No. 3CED or if any relevant document is not attached thereto or the application is not in accordance with understanding reached in any pre-filing consultation referred to in rule 10H , the DGIT (International Taxation) (for unilateral agreement) and competent authority in India (for bilateral or multilateral agreement) shall serve a deficiency letter on the applicant before the expiry of one month from the date of receipt of the application. [ Rule 10K(2) ] An example of such an understanding could be that the bilateral/multilateral APA will be possible only when a tax treaty exists between India and other country(ies) containing an article on 'Mutual Agreement Procedure ; in case of international transactions leading to economic double taxation arising out of TP adjustments, the said tax treaty contains provisions similar to paragraph 2 in the article 9 as provided in OECD model convention on Associated Enterprises the corresponding APA program exists in the other country Time allowed for remove deficiency in the application The applicant shall remove the deficiency or modify the application within a period of 15 days from the date of service of the deficiency letter or within such further period which, on an application made in this behalf, may be extended, so however, that the total period of removal of deficiency or modification does not exceed 30 days. [ Rule 10K(3) ] The DGIT (International Taxation) or the competent authority in India, as the case may be, on being satisfied, may pass an order providing that application shall not be allowed to be proceeded with if the application is defective and defect is not removed by applicant in accordance with sub-rule (3). [ Rule 10K(4) ]