India, Japan to solve bilateral tax issues soon

Source: DNA India

Indian and Japanese tax officials are expected to meet in Tokyo in June to sign agreements aimed at reportedly solving at least 15 transfer pricing disputes.

The disputes relate to Japanese involvement in Indian automobile and auto ancillary sectors, and large trading houses, says a report in a well known business-related daily.

The disputes range from determining royalty, tax dues, profitability of trading houses and the commission paid.

It is expected that the governments of these two nations will apply a mutual agreement procedure (MAP) to ensure of relief of about 10,000 crore rupees to Japanese industries.

According to a Business Standard report, the Indian delegation will ink multiple MAPs with their Japanese counterparts to help companies to work through tax-related cases in an easier manner and ensure further improvement in bilateral trade and industrial ties.

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