Centre fast-tracks APAs for IT firms
The Ministry of Finance has announced major reforms to streamline the Advance Pricing Agreement (APA) programme, particularly benefiting India’s Information Technology (IT) and IT-enabled services sector.
Responding to a question by MP Etala Rajender in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary confirmed that IT companies have shown strong interest in APAs, with 76 agreements signed in FY 2023–24 and 112 in FY 2024–25.
Highlighting the government’s commitment to ease of doing business, Chaudhary stated that unilateral APAs involving IT services will now be concluded within two years of application, with a possible extension of six months upon request.
This provision has been incorporated into the Income-tax Rules, 2026, following the Finance Minister’s budget announcement earlier this year.
