PIB Analysis for UPSC CSE
- Advanced Pricing Agreement
- Nugen mobility Summit
1 . AUSINDEX
- AUSINDEX is the Maritime Exercise between Australia and India
- The bilateral maritime exercise is aimed to strengthen mutual cooperation and enhance interoperability between the Royal Australia Navy (RAN) and Indian Navy (IN) by providing opportunities for interaction and exchange of professional views between the personnel of the two navies.
- The third edition of AUSINDEX would involve exercises in all three dimensions with focus on Anti Submarine Warfare (ASW) and shall be held in three phases.
2 . Advanced Pricing Agreement
Context : The Central Board of Direct Taxes (CBDT) has entered into 18 APAs in the month of March 2019, which includes 03 Bilateral APAs (BAPAs). With the signing of these APAs, the total number of APAs entered into by the CBDT in the year 2018-19 stands at 52, which includes 11 BAPAs. The total number of APAs entered into by the CBDT as of now stands at 271, which inter alia includes 31 BAPAs.
About Advanced Pricing Agreement
- The primary goal of such programmes is to provide certainty to taxpayers in respect of the transfer price of the crossborder transactions undertaken by such taxpayers with their group entities.
- Rapid growth in international trade through an increasing number of Multi National Enterprises (MNEs) has given rise to numerous tax disputes on the issue of transfer pricing.
- An APA is a mechanism to resolve transfer pricing disputes in advance, i.e., before the cross-border related party transaction actually takes place.
- The transfer price of goods and services transacted between group entities is decided in advance by the tax authorities and the taxpayers, so as to prevent any dispute arising from such transfer pricing.
- The Advance Pricing Agreement (APA) programme in India was launched in 2012 vide the Finance Act, 2012 through the insertion of Sections 92CC and 92CD in the Income-tax Act, 1961.
- These statutory provisions, effective from 1st July, 2012, lent the legal backing to the CBDT to enter into Advance Pricing Agreements (APAs) with taxpayers for a maximum period of 5 years in respect of international transactions between Associated Enterprises (AEs) to determine the Arm’s Length Price (ALP) or to specify the manner in which the ALP is to be determined. It was stipulated that the detailed scheme of the APA would be separately notified by the CBDT.
- The progress of the APA scheme strengthens the Government’s resolve of fostering a non-adversarial tax regime. The Indian APA programme has been appreciated nationally and internationally for being able to address complex transfer pricing issues in a fair and transparent manner.
3 . NuGen Mobility Summit
Context : The International Centre for Automotive Technology (ICAT) is organizing a NuGen Mobility Summit, 2019, at Manesar, NCR, from 27th to 29th November 2019.
About the Summit
- The objective of the Summit is to share new ideas, learnings, global experiences, innovations and future technology trends for faster adoption, assimilation and development of advanced automotive technologies for a smarter and greener future.
- This event will help in building a platform for bringing together all stakeholders in the automotive industry to understand global advancements in technologies.
- The Summit is being organized in association with SAENIS, SAE INDIA, SAE International, NATRiP, DIMTS, Department of Heavy Industry, Ministry of Road Transport and Highways, SIAM and ACMA.