State-run GAIL (India) Limited entered into a advance pricing agreement (APA) with the Central Board of Direct Taxes (CBDT) for determining the transfer pricing margin payable on its long-term LNG sourcing contract from the United States for a period of five years.
GAIL is the first public sector undertaking in oil & gas sector in India to successfully sign the APA.
The APA scheme was launched in 2022 to enhance the government’s goal of promoting a non-adversarial tax system and improve the ease of doing business in India.
According to the Income Tax department, APA programmes are operational in a number of countries and they are almost 30 years old in countries like Canada, USA, Japan and UK.
