Mutual Agreement Procedure for foreign companies resolving India tax disputes.
Where a foreign company faces taxation in India that is not in accordance with the treaty - typically double taxation from a transfer-pricing adjustment, a permanent-establishment finding or a withholding dispute - the Mutual Agreement Procedure under Article 25 of the relevant DTAA allows the two competent authorities to resolve it by agreement, independently of domestic appeals.
MAP is often the most effective route to eliminate double taxation because it engages both tax administrations directly and can be pursued alongside domestic litigation. AMLEGALS advises foreign companies on when to invoke MAP, prepares and files the request with the Indian competent authority under Rule 44G, and manages the process through to a resolution that is then given effect in the Indian assessment.
Determining whether the dispute qualifies for MAP under the applicable treaty and the best sequencing with domestic appeals.
Preparing and filing the MAP application with the Indian competent authority with the supporting position paper.
Coordinating MAP with domestic appellate proceedings so neither prejudices the other.
Supporting the position through the competent-authority negotiation between India and the treaty partner.
Giving effect to the MAP resolution in the Indian assessment and securing the corresponding relief.
Advising on bilateral APAs or safe positions to prevent the same issue recurring in later years.
When it is taxed in India in a way that is not in accordance with the treaty and gives rise to double taxation - commonly after a transfer-pricing adjustment, a PE finding or a withholding dispute. MAP engages both competent authorities to resolve the matter and can run alongside domestic appeals.
Yes. MAP and domestic appellate proceedings can proceed in parallel. The choice of which to pursue to conclusion depends on the issue and the likely outcome. AMLEGALS coordinates both so that one does not foreclose the other.
Timelines vary with the complexity and the treaty partner, and the BEPS minimum standard targets resolution within an indicative period. The quality of the position paper and the evidence materially affects speed, both of which AMLEGALS prepares.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
Share the key facts for a confidential preliminary assessment of your India matter.