In many countries, the APA regime provides a “backtracking” mechanism for the handling of DLP cases relating to transactions conducted in the run-up to the APA. The “backtracking” provisions deal with the applicability of the ALP or ALP determination method for international transactions already carried out in a period prior to the APA period. However, the “backtracking” discharge is granted on a case-by-case basis under certain conditions. The provision of such a mechanism in Indian law would also result in a reduction in the major disputes currently underway or likely to arise in the future with respect to transfer pricing issues. The Funding Act 2014 (No.2) amended the law to allow the withdrawal of APAs for up to four previous years, effective October 1, 2014. The return rules essentially imply that a position ready to negotiate the pricing of an international transaction obtained under the pre-price agreement can be applied to a similar transaction for up to 4 (four) years in the past. The inclusion of the backtracking rules in the APP program in India is an attempt to align with global best practices and a positive attempt to resolve ongoing disputes and extend taxpayer security for at least 9 years. What would be important at this stage for the success of the back-up program is that CBDT facilitates the practical implementation of the rules. On March 14, 2015, cbDT notified the announced income tax regime (third amendment) 2015 (“APA Roll Back Rules”) to impose the conditions, procedure and procedure of such a withdrawal mechanism.

An applicant may apply for the withdrawal requirement even if the agreement was reached before January 1, 2015 or in an APA application before January 1, 2015. In such cases, the applicant was initially required to apply for a withdrawal plan on or before March 31, 2015. However, since the window of opportunity for filing back-up applications was only 16 days, the CBDT issued a press release specifying the extension of the filing period for return forms until June 30, 2015. Formal communication in this regard is expected. That is why it is proposed to amend the legislation to allow for a backtracking mechanism in the APA regime. The APA may, under these conditions, procedures and conditions, to determine the length price of the arm or to determine how the price of the arm should be determined in relation to an international transaction that a person must apply in a maximum period of four years before the first of previous years for which the pre-price agreement applies to the future international transaction. , to be determined. Section 92CC of the Act provides for a pre-price agreement (APA). It authorizes the Central Office of Direct Taxes, with the agreement of headquarters, to enter into an APA with anyone responsible for determining the price of firearms (ALP) or to determine how the ALP should be designated for an international transaction to be concluded by the person.