Pre-filing consultation (advance pricing agreement)

How it works.

• The eligible person applies in Form No. 50 to the Principal Chief Commissioner of Income-tax (International Taxation), and the team then holds the consultation (sub-rules 1 and 2).
• For a bilateral or multilateral agreement, the competent authority of India, or a representative, is associated in the consultation (sub-rule 3).
• The consultation determines the scope of the agreement, identifies transfer pricing issues, determines the suitability of the international transaction for the agreement, and discusses its broad terms (sub-rule 4).
• It neither binds the Board or the person to enter into an agreement or start the process, nor is it deemed an application for an agreement (sub-rule 5).
• It does not apply on renewal of an agreement (sub-rule 6).