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Commerce · Q740

Income Tax and Corporate Tax

Graduate and Post Graduate · Commerce · question 740

Q740

An Advance Pricing Authority is an agreement between a tax payer and tax authority determining the transfer pricing methodology for pricing the tax payers international transactions for future years. The APA shall be valid for which of the following period as may be specified in the agreement?

A.
For such period not exceeding 5 consecutive previous years
Answer
B.
For such period not exceeding 10 consecutive previous years
C.
For such period not exceeding 2 consecutive previous years
D.
For such period not exceeding 3 consecutive previous years

Answer: Option A

Solution

Answer: Option A
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