The Central Board of Direct Taxes (CBDT) on Friday signed a bilateral Advance Pricing Agreement (APA) with a Japanese company.“This is India’s first bilateral APA. The APA is for five years,” an official statement said.APAs will improve the investment climate in the country, it said, adding the APA has been finalised in a period of about one-and-a-half years, which is shorter than time normally taken in finalising APAs internationally.The scheme has been introduced to bring about certainty and uniformity in transfer pricing matters of multinational companies and reducing litigation.

Source - http://www.thehindu.com