The era of globalization, that we live in and on whose journey the world embarked a couple of decades ago,
albeit with a bit of trepidation, is almost irreversible. The new world trade order ushering in globalization has resulted in
considerable increase in foreign institutional investments and a huge expansion in the production and services base
leading to a multiplicity of international transactions. International taxation is hence, assuming increasing importance,
wherein the spectrum of transfer pricing is a major component. Transfer pricing is one of the most litigious subject world
over. Therefore, Advance pricing agreement is one of the mechanisms to avoid Transfer pricing disputes.
This article seeks to analyse the conceptual frame-work of APA, and to also analyse and interpret
Corporates’(Manufacturing and Service sectors) view about Specific Issues of Advance Pricing Agreement in India, and
to also propose measures for improvement of Advance Pricing Agreement in India.