INCOME-TAX RULES, 1962

FORM NO. 3CED

[See sub-rule (1) of rule 10-I]
Application for an Advance Pricing Agreement
To,
The Competent Authority of India
or
Director General of Income-tax (International Taxation)
New Delhi

Sir/Madam,
This is to state that ....................... (Name of the Applicant)....... wishes to negotiate
an APA with the Central Board of Direct Taxes. I am submitting herewith the
necessary particulars hereunder:
I. General
1. Particulars of the applicant:

a. Full name of the applicant:

b. Permanent account number:

c. Address of the applicant:

d. Address for communication:

e. Location(s) of the business

enterprises in India:

f. E-mail Id and the contact

numbers of the person with
whom correspondence is
required to be made:

g. Names and designation of the

authorised representatives who
would be appearing before the
authorities for negotiations of
the APA:

2. Whether pre-filing discussions were

sought by the applicant? If yes,
please furnish:

a. Date of application for pre-

filing meeting:
b. Date of pre-filing meeting(s)
with the APA Team:
3. Particular(s) of the Associated Enterprises with whom the APA is
requested for :
a. Name(s) of the Associated Enterprise(s):
b. Name(s) of the country(ies) in which the
associated enterprises mentioned in clause
(a) are located:
c. Taxpayer Registration Number/
Taxpayer Identification Number/
Functional equivalent/ Any unique number
used for identification of the Associated
Enterprise by the Government of that
country/specified territory in which the
Associated Enterprise claims to be located:

4. Particulars of the Parent Company(ies) of the applicant:

a. Name of Immediate parent company of
applicant:
b. Address of Immediate parent company
of applicant:
c. Country of residence of Immediate
parent company of applicant:
d. Taxpayer Registration Number/
Taxpayer Identification Number/
Functional equivalent/ Any unique number
used for identification of the Immediate
parent company by the Government of that
country/specified territory of which it
claims to be a resident:
e. Name of Ultimate parent company of
applicant:
f. Address of Ultimate parent company of
applicant:
g. Country of residence of Ultimate parent
company of applicant:
h. Taxpayer Registration Number/
Taxpayer Identification Number/
Functional equivalent/ Any unique number
used for identification of the Ultimate
parent company by the Government of that
country/specified territory of which it
claims to be a resident:
5. a. Are you applying for a Unilateral
Unilateral, Bilateral or
Multilateral APA: Bilateral

Multilateral

b. If you are applying for a Yes No

Bilateral or Multilateral APA,
have the Associated Enterprises
applied for APA with the
Competent Authority in the
country of its residence?

c. If yes, enclose evidence of

furnishing such application
with the other Competent
Authority:
d. If no, by what date the
application is proposed to be
furnished to the other
Competent Authority:
e. If the application is for
Unilateral APA and it involves
international transactions with
an entity located in a
jurisdiction with which India
has an agreement under section
90 or 90A of the Act for
avoidance of double taxation,
kindly provide explanation for
why the request is not for
bilateral or multilateral APA.
f. Whether any rollback request is Yes No
made.

J. If yes, enclose copy of relevant

Form No. 3CEDA
6. Particulars of fee pai d by the Amount in Rs.
applicant: Challan No. :
Dated:
7. Period of APA proposed along with
the date from which APA is sought
to be applicable:
8. Details of the international
transactions proposed to be covered
in the APA (Description of the
property or services to which the
proposed APA relates):

9. Proposed Transfer Pricing

Method(s):

10. Proposed terms and conditions, and

critical assumptions, for the APA:

11. History and background of the

applicant and the associated
enterprise:

12. General description of business and

products/services:

13. Multinational structure,

organizational arrangement,
operational set-up, including major
transaction flows:

14. Identify all other transaction flows of

the multinational enterprise
(volumes, directions and amounts)
that may have an impact on the
pricing of the covered transactions:

15. Functional currency for each entity

and the currency which is used for
the proposed transactions to be
covered under the APA:

16. Accounting and costing system,

policies, procedures, and practices,
including any significant financial
and tax accounting differences that
may affect the TPMs:
II. Functional analysis
17. Detailed functional analysis of the
applicant and all relev ant entities
with respect to the covered
transactions:

18. Business strategies - current and

future Budget statements, projections
and business plans for future period
covered by proposed APA, general
business and industry trends, future
direction/business strategy including
R&D, production and marketing:

19. Financial and operating information,

including corporate annual reports:
(Please enclose copies)
a. Financial statements on a
consolidated and
unconsolidated basis for the
prior five years, or the most
recent business cycle as
appropriate (Also provide
interim statements for the most
recent period prior to the date
of the submission):

b. Income-tax returns and related

supporting schedules for th e
prior three years including
Form 3CEB:

c. Operating data (gross and net)

segmented by product line,
division, unit, and geographic
region for the prior five years,
or the m ost recent business
cycle as appropriate:

20. Relevant marketing and financial

studies: (Please enclose copies)

21. Copies of all relevant inter-company

agreements (pricing, c ost sharing,
licensing, distributorship etc.):
(Please enclose copies)
III. Industry and market analyses
22. Detailed industry analysis:
 a. Comprehensive description of
industry as w ell as general ly
accepted industrial and
commercial practices:

b. Identification and general

profile of co mpetitors,
including respective market
shares:

c. Industry and general business

statistics, financial ratios, and
analyses/studies:

d. Critical success factors:

23. Detailed analysis of the markets for

all countries involved:
IV. Transfer pricing background

24. Discussion of relevant legal

considerations and requirements as
per:

a. Indian law

b. Foreign law

c. Income-tax treaty between

India and the foreign country

25. Discussion of transfer pricing

methodologies, policies, and
practices used by the applicant and
associated enterprises for the covered
transactions during the past three
years, or business cycle as
appropriate:

26. Discussion of relevant rulings,

APAs/BAPAs/MAPAs, and other
similar arrangements entered into
with foreign tax administrations, for
transfer pricing or other valuation
bases, or other taxation matters
entered into by the applicant (or its
associated enterprises) and Indian or
foreign tax administrations:
27. Discussion of relevant Indian
income-tax audit, appeals, judicial
and competent authority history:

28. Discussion of relevant foreign

income-tax audit, appeals, judicial
and competent authority history:

29. Discussion of un-assessed taxation

years (Indian and foreign) and related
outstanding tax, legal and other
pertinent issues:
V. Transfer Pricing Methodology analysis
30. Provide all information, including
detailed analyses and expl anations
needed to establish the
appropriateness of a proposed TPM,
in accordance with tra nsfer pricing
regulations as contained in the Indian
Income-tax law:

31. Discussion and analysis of each

transfer pricing method, applied or
rejected, for each covered
transaction. In particular provide
details on accepted or rejected
internal comparables. (Indicate
assumptions, strategies and policies
that may have influenced the
acceptance or rejection of each
TPM):

32. Summary of selected TPMs and

secondary TPMs, if use d as a sanity
check:
VI. Impact of proposed TPMs
33. Application of the proposed TPMs to
the covered transactions for the three
prior years operations or the m ost
recent business cycle, and discuss
results:

34. Application of the proposed TPMs to

the time period applicant wants the
APA to cover and discuss results:
35. Discussion and quantification of th e
variance, if any, from the
methodology applied in section IV:
I declare that to the best of my knowledge and belief, the information furnished in
the application is correct and truly stated.

Place: Yours faithfully,

Date: Applicant
Notes:
1. Bilateral or multilateral APA ap plication shall be filed with the Competent
Authority i.e. the Joint Secretary FT&TR-I, New Delhi in triplicate.
2. Unilateral APA app lication shall be filed with the Director General of
Income-tax (International Taxation), New Delhi in triplicate.
3. If the space provided for answering any item in the a pplication is found
insufficient, separate enclosures may be used for the purpose. These
enclosures should be signed by the person authorised to sign the application.
4. The fee shall be computed in accordance with the sub-rule (5) of rule 10-I.
5. The application shall accompany with all the relevant documents.