International Journal of Applied Research
Vol. 2, Issue 1, Part L (2016)
Mutual Agreement Procedure in India
Trade is significant icon to earn profit, profit is blood of the business and it creates tax revenue, therefore, International tax is one of the tax avenues towards countries, globally; the key dispute resolution method in use is MAP. MAP is available irrespective of treatment on hand in International tax laws and addition international remedies. The performance of MAP overrides the condition of the international tax law limits. Under MAP the Revenue Authorities of two separate nation’s together struggle to resolve a dispute that way to double taxation. Transfer pricing cases, in terms of a result adjustment. If statistics are anything to go by, today India is the world's fastest growing economy at 7.3% in 2015, outstripping the global average of 3.1% with a new government in the centre. The current law mechanisms such as the Settlement Commission, Authority for Advance Rulings (AAR), Dispute Resolution Panel (DRP) and Advance Pricing Agreement, are in the broader sense, forums for avoiding protracted litigation. However, most of these methods have not proved to be fully effective in expediting resolution of tax litigation for various reasons. On this note, the most immediate imperative on the agenda of the new Government should be to find a faster and alternative way to resolve disputes. While there are various means of resolving tax disputes by the way of domestic litigation processes, Settlement Commission, AAR, APA, arbitration and MAP, global giants such as Cairn, Nokia and Vodafone have resorted to international arbitration to resolve so called tax issues. Some other companies like Nokia have also initiated MAP as an alternative to resolve tax disputes in India. In order to reinstate the investor confidence in the Indian government and make India a more predictable tax jurisdiction, it becomes increasingly imperative for the Government to resolve these large tax disputes in India.
How to cite this article:
Jabiulla. Mutual Agreement Procedure in India. Int J Appl Res 2016;2(1):791-796.