Around 200 transfer pricing disputes between the two countries in IT Services [ITS] and Information Technology enabled Services [ITeS] segments are expected to be resolved under this Agreement during the current year.

The Government has resolved 35 transfer pricing disputes with the US in the Information Technology (IT) space and another 100 are likely to be settled in the next three months.

A Framework Agreement was recently signed with the US under the Mutual Agreement Procedure (MAP) provision of the India-US Double Taxation Avoidance Convention (DTAC).

“This is a major positive development,” the Central Board of Direct Taxes (CBDT) said in a statement.

Around 200 transfer pricing disputes between the two countries in IT Services [ITS] and Information Technology enabled Services [ITeS] segments are expected to be resolved under this Agreement during the current year.

The Framework Agreement with the US opens the door for signing of bilateral Advance Pricing Agreements (APAs) with Washington, the CBDT said.

“The MAP programmes with other countries like Japan and UK are also progressing very well with regular meetings and resolution of past disputes,” it added.