Rule 105: APA pre-filing consultation in Form 50
Rule 105 allows an eligible person to request pre-filing consultation before the formal APA application. The consultation helps define the transaction and issues, but neither binds the parties to an agreement nor counts as the application itself.
Official notified Income-tax Rules, 2026Need advice on Rule 105?
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On this page
- Bare law
- Request consultation using Form 50
- Use the meeting to clarify scope and suitability
- Bilateral and multilateral cases involve the competent authority
- Consultation is non-binding and not the application
- Renewal uses the separate framework
- Key takeaways
- Practical checklist
- FAQs
- Glossary
- Official sources
Bare law
Rule 105 - Pre-filing consultation
(1) An eligible person may make an application in Form No. 50 to the Principal Chief Commissioner of Income-tax (International Taxation) for a pre-filing consultation.
(2) On receipt of the application, the team shall hold pre-filing consultation with the eligible person who has applied under sub-rule (1).
(3) The competent authority of India or his representative shall be associated in pre-filing consultation involving bilateral or multilateral agreement.
(4) The pre-filing consultation shall, among other things, — (a) determine the scope of the agreement; (b) identify transfer pricing issues; (c) determine the suitability of international transaction for the agreement; and (d) discuss broad terms of the agreement.
(5) The pre-filing consultation shall— (a) neither bind the Board or the eligible person who has applied under sub-rule (1) to enter into an agreement or initiate the agreement process; (b) nor be deemed to mean that the person has applied for entering into an agreement.
(6) The provisions of this rule shall not apply in the case of renewal of the agreement.
Rule breakdown
Request consultation using Form 50
An eligible person may apply to the Principal Chief Commissioner of Income-tax (International Taxation) in Form 50. On receipt, the team holds the consultation with the applicant.
Prepare a concise transaction description, relevant countries, functions, risks, proposed years and principal pricing questions so the discussion can address the actual case.
Use the meeting to clarify scope and suitability
The stated purposes include determining the agreement’s scope, identifying transfer-pricing issues, considering the transaction’s suitability and discussing broad terms.
Record the issues discussed and the evidence still required. Preliminary discussion of a margin or method should not be treated as final agreement.
Bilateral and multilateral cases involve the competent authority
India’s competent authority or its representative is associated with consultations involving bilateral or multilateral agreements.
Identify the intended agreement type and foreign jurisdictions early so the appropriate process can be considered.
Consultation is non-binding and not the application
Neither the Board nor the eligible person is bound to enter an agreement or initiate the agreement process by the consultation. It also does not mean that the formal APA application has been made.
If proceeding, separately meet Rule 106’s form, fee and timing requirements. Do not allow the consultation stage to obscure the filing deadline.
Renewal uses the separate framework
Rule 105 expressly does not apply in the case of renewal of an agreement. Review the renewal procedure rather than assuming a fresh consultation is required by this rule.
Keep the current agreement, compliance history and proposed changes ready for the appropriate renewal process.
Key takeaways
Optional preliminary step
The rule says an eligible person may apply.
Form 50
Use the designated consultation form and authority.
No binding agreement
The consultation is not formal application or acceptance.
Renewal excluded
This rule does not govern renewal consultation.
Practical checklist
- Prepare the transaction scope and key pricing issues.
- Identify intended bilateral or multilateral coverage.
- Track the separate formal application deadline.
Avoid
- Do not treat consultation notes as an approved APA.
- Do not confuse Form 50 with Form 51.
FAQs
Does Form 50 count as the formal APA application?
No. Sub-rule (5)(b) expressly says the consultation does not mean an application for an agreement has been made.
Are the parties bound to proceed after consultation?
No. The consultation binds neither party to enter an agreement or initiate the process.
Does this rule apply to renewal?
No. Sub-rule (6) excludes renewal of an agreement.
Glossary
- Pre-filing consultation
- The preliminary scope and suitability discussion provided under Rule 105.