NEW DELHI: APAs will improve investment climate in the country. In the context of growing economic ties between Japan and India, especially after Prime Minister Narendra Modi’s visit to Japan, this APA is expected to generate positive sentiments among Japanese investors in India.
Mitsui is one of the largest general trading companies of Japan operating in diverse businesses including infrastructure and energy. Toyota and Marubeni are likely to be among other Japanese companies which are in talks to sign bilateral APAs with India.
The entire process is quite complex and normally takes a few years to complete. However, credit goes to the two authorities and the taxpayer that the first bilateral APA between India and Japan has been signed in less than two years. This will convey a strong positive message to investors in India,” said SP Singh, Senior Director, Deloitte.
To avoid protracted litigation, many multinational companies have decided to adopt the APA route. In the first year, 146 applications were filed, which was a record compared to APA program of any other country. with a Japanese company. It is learnt that the company is Mitsui. The agreement will provide certainty to the company operating in India and avoid conflicts over sharing of taxes between India and Japan and reduce transfer pricing disputes.
