How and when a unilateral Advance Pricing Agreement (APA) entered into can be converted into a bilateral APA?

A unilateral Advance Pricing Agreement 'APA' can be converted into a bilateral APA before the mutually agreed draft agreement is forwarded by the DGIT (International Taxation) to the Board. While converting a unilateral APA application to a bilateral APA application, the applicant or its Associated Enterprise needs to make a similar request with the competent authority of the other country. The bilateral request of the applicant shall be forwarded by the DGIT to the competent authority in India. The competent authority of India shall decide whether the bilateral request is allowable based on the existence of appropriate provision on lines of OECD Model Article 9(2) in the tax treaty between India and other country and also on the existence of an APA program in that other country. If the request is allowed, then the application would be processed as a bilateral APA application.