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transfer pricing in the proposed code are more or less similar to those prevalent in present direct tax laws, the Direct Taxes Code Bill envisages certain strategic changes.

An important change was proposed by the Direct Tax Code Bill of 2010 in certain procedural aspects. At present, it is the Transfer Pricing Officer (TPO) who completes the Transfer Price Audit and sends the copy of the order to the Income Tax Officer. The Income Tax officer, then follows up and completes the assessment incorporating the order received from Transfer Pricing Officer and concludes the assessment of other corporate law adjustments [34] .? However, as per the amendments proposed by the Direct Tax Code Bill of 2010 after the determination of the arm's length price, the Transfer Pricing Officer forwards his report to the Income Tax Officer within a time frame of 42 months from the end of the financial year in which the international transactions have taken place. [35] ? The completion of the assessment, taking into consideration the arm's length price as determined by the Transfer Pricing Officer, is then carried out by the Income Tax Officer. The completion of the assessment can only be carried out after taking into consideration the changes and adjustments proposed by the Transfer Pricing Officer. [36]

The concept of Advance Pricing Agreement (APA) first came to the picture in the Bill of 2009 and was reiterated in the Bill of 2010. If passed, it would perhaps be the biggest transformation in the direct tax laws in India with respect to transfer pricing. The relevant clause of the proposed Direct Tax Code reads: 'The Board, with the approval of the Central Government, may enter into an advance pricing agreement with any person in respect of the arm's length price in relation to an international transaction which may be entered into by that person on the basis of the prescribed method being the most appropriate method. [37] '? The said agreement is proposed to be valid for a maximum period of five consecutive financial years unless there is a change in law or facts and will be binding on the tax payer, the CIT and the income tax authorities below him. The Parliamentary Standing Committee on the Direct Taxes Code Bill of 2010 has made certain recommendations regarding APAs. It has been suggested that the APAs should be made time bound in nature and to further encourage APAs, the current tax treaties of India should be suitably amended and the ones to be made in the future should be drafted while keeping APAs in mind. The reason why this proposed provision has received such support is that it may bring in certainty and consistency in the transfer pricing provision with respect to the transactions covered in the agreement.

Another important provision proposed by the Direct Tax Code Bill, 2009 and that of 2010 is the adoption of safe harbour rules in determination of arm's length price. Safe harbour rules in relation to computation of arm's length price, mean circumstances in which the income-tax authorities shall accept the transfer price declared by the assessee as the arm's length price [38] . The Finance Act, 2011 also adopted these rules in the Income Tax Act in the form of section 9CB. However, the proposal in the Direct Tax Act absolves taxpayers from the burden of a detailed and accurate analysis for transfer pricing and hence must be mentioned as an important amendment. This proposal of introducing safe harbour r本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。