Hello and welcome to the Current Affair's Portal of ExamPundit.in. The tax department has resolved 180 tax disputes worth Rs 5,000 crore under mutual agreement procedure (MAP) since April 2014, the Central Board of Direct Taxes (CBDT) said in a statement issued on Tuesday.
The resolved cases pertain to various sectors of the economy like software services, IT-enabled services, manufacturing, consultancy services, etc. The countries with which cases have been resolved are the US, Japan, UK and China.
MAP is a mechanism under the Double Taxation Avoidance Agreements (DTAAs), or tax treaties signed by India with various countries, through which international tax disputes are resolved.
The MAP programme is led by one or more Competent Authorities designated by the signatory countries to resolve tax disputes under the provisions of each treaty. In the past two years, increased focus on MAP has resulted in resolution of large number of disputes relating to double taxation.
According to CBDT, MAP has emerged as an effective alternative tax dispute resolution mechanism. Its use to resolve disputes has provided comfort to foreign investors and also reduced the number of cases under litigation.
Team Exam Pundit