Toyota, Mitsui, Marubeni to sign first set of pacts
Mitsui, Toyota and Marubeni are likely to be among Japanese companies that would sign the first set of bilateral advance-pricing agreements (APA) with India shortly. These agreements will provide certainty to Japanese multinational firms operating in India and avoid conflicts over sharing of taxes between India and that country.
Two sources in the know told Business Standard that these companies were in advanced stages of negotiating bilateral APAs. Some companies from other countries have also applied for bilateral agreements but Japanese firms are likely to be the first to sign those.
“Most Japanese companies are interested in bilateral APAs. We plan to sign the first bilateral APA with them this year. Broad principles have been agreed upon,” said a finance ministry official who did not wish to be named as the talks were confidential.
Tokyo-headquartered Toyota, with premium vehicles like Land Cruiser, Prado, Pirus, Camry and Fortuner in its stable, is a well-known automotive manufacturer in India. Mitsui is one of Japan’s largest general trading companies operating in diverse businesses like infrastructure and energy. Marubeni India, a subsidiary of Marubeni Japan, deals in food, chemicals, lifestyle, pulp & paper and metals & mining.
“There is an in-principle agreement on some APAs. We should be able to close those by the end of the year,” said EY Partner Vijay Iyer.
