Rule 114 of the Draft Income-tax Rules, 2026 requires the Transfer Pricing Officer to conduct annual compliance audits of APAs, ensuring adherence to agreed terms and critical assumptions.
Rule 117 requires filing of modified returns, payment of additional tax, and withdrawal of pending appeals to give effect to rollback provisions, failing which the agreement may be cancelled.
Rules 112 and 113 of the Draft Income-tax Rules, 2026 allow amendment of APA applications before finalisation and mandate timely filing of annual compliance reports to ensure continued adherence.
Rules 115 and 116 empower the Board to revise or cancel agreements where conditions fail, laws change, or compliance lapses occur, while mandating hearings, written reasons, and procedural safeguards to ensure transparency.
Rule 111 of the Draft Income-tax Rules, 2026 permits rollback of Advance Pricing Agreements to earlier years subject to strict conditions, but disallows it where appellate orders exist or income is reduced.
Rule 110 of the Draft Income-tax Rules, 2026 clarifies that Advance Pricing Agreements are binding only if critical assumptions and conditions remain unchanged, and may be revised or cancelled upon material change.
Draft Rule 109 of the Income-tax Rules, 2026 lays down a detailed, time-bound procedure for processing Advance Pricing Agreement applications, including consultation, enquiry, agreement finalisation, and conditions for closure without refund.
Draft Rule 108 of the Income-tax Rules, 2026 establishes a structured deficiency review process for Advance Pricing Agreement applications, allowing correction of defects and providing for refund of fees if the application is rejected.
Draft Rules 103 to 107 of the Income-tax Rules, 2026 define key expressions, eligibility, consultation, application, and withdrawal procedures for Advance Pricing Agreements to provide structured and transparent APA implementation.
Draft Rules 101 and 102 of the Income-tax Rules, 2026 prescribe the procedure for opting safe harbour in income attribution cases and clarify that taxpayers cannot invoke Mutual Agreement Procedure once the option is validly exercised.
