CBDT's FAQs on APA - Clarity or Surprises?

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CBDT's 92 page APA Guidance along with FAQs, deals with aspects like pre-filing consultation, information to be given in case of anonymous requests, filing of APA application, APA process, critical assumptions, conversion of unilateral AP into bilateral APA and vice versa, firewall with regards to confidential information, etc.

 

The Guidance states that for applying bilateral/multilateral DTAA, India’s treaty with the other country must contain provisions similar to Article 9(2) of OECD MTC. Is this approach too restrictive? Is the intent to use the services of legal/economic experts on a case specific/ need based approach a welcome clarification? The Revenue draws support from foreign jurisdictions and Income tax Act to justify sharing of confidential information submitted to APA team, within tax department. But will this affect confidence of taxpayers to file an APA application? 

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