GAIL India signs advance pricing agreement with CBDT

State-owned GAIL (India) Ltd has signed an advance pricing agreement (APA) with the Central Board of Direct Taxes (CBDT) for determining the transfer pricing margin payable on the long-term LNG the firm sources from the US. This is for the first time a public service unit signed APA in Oil and Gas sector.  

“GAIL is the first PSU in the Oil & Gas sector in India to successfully sign the APA. The APA was signed by Joint Secretary, FT & TR-1, CBDT Sh. Rasmi Ranjan Das and Sh. R.K. Jain, Director(Finance) GAIL,” tweeted GAIL . The pact was signed by Rasmi Ranjan Das of CBDT and R K Jain, Director (Finance), GAIL, the company said in a statement.

#GAIL (India) Limited and the Central Board of Direct Taxes (CBDT) entered into the Advance Pricing Agreement (APA) for determining the Transfer Pricing Margin payable on its long-term LNG sourcing contract from the USA for the period of five years. pic.twitter.com/OUbvWnsClh

— GAIL (India) Limited (@gailindia) February 9, 2023

"GAIL and CBDT entered into a landmark advance pricing agreement (APA) for determining the transfer pricing margin payable on its long-term LNG sourcing contract from the USA for the period of five years," it said.

The APA scheme aims to enhance the government's goal of promoting a non-adversarial tax system and improving the ease of doing business in India.

The gas utility firm has contracts with US suppliers to buy 5.8 million tonnes per annum of liquefied natural gas (LNG).

Click Here For Latest Updates On Stock Market | Zee Business Live