Compliance Audit of The Agreement [ Rule 10P ] - International Taxation - Income Tax

Compliance Audit of The Agreement [ Rule 10P ] The compliance audit shall be carried out by the jurisdictional TPO in accordance with Rule 10P . The compliance audit will be carried out only to ensure compliance with the terms of the APA, including satisfaction of the critical assumptions and consistency of the application of the TPM. The TPO having the jurisdiction over the assessee shall carry out the compliance audit of the agreement for each of the year covered in the agreement. [ Rule 10P(1) ] The Transfer Pricing Officer may require - ( i ) the assessee to substantiate compliance with the terms of the agreement, including satisfaction of the critical assumptions, correctness of the supporting data or information and consistency of the application of the transfer pricing method; ( ii ) the assessee to submit any information, or document, to establish that the terms of the agreement has been complied with. [ Rule 10P(2) ] The TPO shall submit the compliance audit report, for each year covered in the agreement, to the DGIT (International Taxation) in case of unilateral agreement and to the competent authority in India, in case of bilateral or multilateral agreement, mentioning therein his findings as regards compliance by the assessee with terms of the agreement. [ Rule 10P(3) ] The DGIT (International Taxation) shall forward the report to the Board in a case where there is finding of failure on part of assessee to comply with terms of agreement and cancellation of the agreement is required. [ Rule 10P(4) ] The compliance audit report shall be furnished by the TPO within six months from the end of the month in which the Annual Compliance Report referred to in rule 10-O is received by the TPO. [ Rule 10P(5) ] The regular audit of the covered transactions shall not be undertaken by the TPO if an agreement has been entered into under rule 10L except where the agreement has been cancelled under rule 10R . [ Rule 10P(6) ]