New Delhi: India-Japan cooperation has won the OECD Mutual Agreement Procedure 2019 Award.
This was announced on Wednesday, November 18, on the occasion of Second Tax Certainty day by OECD, said Finance Ministry sources.
Finance Ministry sources said that India with Japan has won the 2019 Award on Co-operation for highest agreement ratio for a pair of jurisdictions for transfer pricing cases. The Award to India-Japan Mutual Agreement Procedure (MAP) Cooperation demonstrates India’s commitment to provide tax certainty and efficacious dispute resolution mechanism for the Japanese companies doing business in India. There is large number of Japanese companies doing business in India in manufacturing as well as trading sectors.
Sources said that all jurisdictions which joined the Inclusive Framework prior to 2020 were considered for these awards. India as an Inclusive Framework jurisdiction is committed to implement the minimum standards under Base Erosion and Profit Shifting (BEPS) Project’s Action 14 on ‘Making Dispute Resolution Mechanisms More Effective.’
It may be noted that Mutual Agreement Procedure (MAP) under the tax treaties addresses tax disputes arising from cross border transactions by foreign companies and non-residents. India has provision for MAP in all its tax treaties.