Transfer pricing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2011 What is the difference between Advance pricing agreement(APA) and Mutually Agreed Procedures(MAP) as per the OECD guidelines?

Can anyone explain the pros and cons of those two and favorable conditions for adaptability in any of the countries?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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07 December 2011 APA is a price or percentage fixed in advance by Govt. for a particular type of transactions so that the margin of profit,if within the APA ,is not subject to Transfer Pricing Audit.

MAP is an negotiation between Competent Authorities of 2 countries over the taxability of transactions by one country which are not in accordance with the DTAA between those countries.

Anuj
+91-9810106211
femaqury@gmail.com

CA Mukesh Jain S

CA Mukesh Jain S (Expert)
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15 December 2011
Can MAP be subject to Transfer Pricing Audit?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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15 December 2011 MAP is the last resort to settle any tax dispute which can be even Transfer Pricing.

Anuj
+91-9810106211
femaquery@gmail.com

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2012 Thanks Anju. One more query.
My company has operations in Canada and it had entered into an APA agreement on 1,Jan,2004 which is valid up to 31,Dec,2011 with Canadian regulation authorities.

As the agreement is expired w.e.f 1st Jan 2012 and it will take at least a month for us to enter into a new agreement. Can you tell me whether from the period 1st Jan 2012 to up to date of new agreement can we follow the old APA? If the answer to the above case is no, will be in soup for not ensuring the arms length principle up to one month period? Note: We have a considerable operations during this one month period.

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2012 Once again thanks in advance.

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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09 January 2012 First of all my name is Anuj and not ANJU.

Also you need to check Canadian laws for the same.

Anuj

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2012 Apology for misspelling your name. I am searching for that can you please tell me if you come across any of such material. It will be greatly helpful to me.

Phanindra

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