Rule 106: APA application in Form 51 and ₹20 lakh fee

The rule specifies a fee of ₹20 lakh and requires the application to be accompanied by proof of payment. Keep the payment evidence with the complete form and supporting documents.

Do not substitute the pre-filing consultation form or assume a prior meeting amounts to the formal application.

A unilateral application goes to the Principal Chief Commissioner of Income-tax (International Taxation). Bilateral or multilateral applications go to India’s competent authority.

Check the current official submission instructions for that authority and retain acknowledgment of the application.

For transactions continuing from dealings already occurring, the application must precede the first day of the first tax year for which it is made.

Illustration: if that first tax year begins 1 April 2027, filing must occur before that day. This is a timing example, not a relaxation or extension.

For the remaining transactions, the rule requires filing before the transaction is undertaken. Plan around the actual commercial start rather than waiting for the return filing date.

Identify which branch applies to each proposed transaction and resolve uncertain timing before committing to the application.

Prepare the scope, facts and evidence needed for preliminary scrutiny under Rule 108. The subsequent rules distinguish non-refundable withdrawal from the specified fee refund on an application not allowed to proceed for unremoved defects.

A fee payment alone is not approval, and any refund position must be checked under the rule governing the actual outcome.