Rule 107: Withdrawing an APA application
Rule 107 permits an applicant to withdraw an APA application before its terms are finalised. The withdrawal is communicated to the authority for the agreement type, and the fee already paid is not refunded.
Official notified Income-tax Rules, 2026Need advice on Rule 107?
This article is for general information. Read the official Rules and applicable Act amendments, including the Taxation and Other Laws (Amendment) Act, 2026. If you need professional advice for your situation, contact Bizeneed.
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Bare law
Rule 107 - Withdrawal of application for agreement
(1) The applicant may withdraw the application for agreement at any time before the finalisation of the terms of the agreement by furnishing an intimation to the Principal Chief Commissioner of Income-tax (International Taxation), in case of unilateral agreement and to the competent authority of India, in case of bilateral or multilateral agreement.
(2) The fee paid shall not be refunded on withdrawal of application by the applicant.
Rule breakdown
Check the stage of the application
The stated right to withdraw operates before finalisation of the agreement’s terms. Review the actual progress and correspondence before assuming this provision remains available.
Withdrawal of a pending application is different from revision or cancellation of an agreement already entered into.
Send the intimation to the correct authority
For a unilateral application, intimate the Principal Chief Commissioner of Income-tax (International Taxation). For a bilateral or multilateral application, intimate India’s competent authority.
Identify the application and agreement type clearly and keep evidence of the intimation and receipt.
The application fee is not refundable on withdrawal
Sub-rule (2) expressly denies refund of the paid fee where the applicant withdraws. Include that cost in the decision to discontinue the process.
Do not confuse voluntary withdrawal with the separate preliminary-defect outcome addressed in Rule 108.
Maintain the ordinary compliance position
Record why the application is withdrawn and reassess the pricing and documentation approach for the transactions. A withdrawn application is not an agreement accepting the proposed price.
Keep relevant deadlines and pending tax proceedings under review with the advisers handling the application.
Key takeaways
Before terms are finalised
The rule’s timing boundary must be checked.
Correct authority
The recipient depends on the agreement type.
No fee refund
Voluntary withdrawal has an express non-refund rule.
Practical checklist
- Confirm the application has not passed the stated stage.
- Send the intimation to the correct authority.
- Record the fee consequence and ongoing compliance plan.
Avoid
- Do not assume withdrawal preserves an agreed price.
- Do not assume the fee-refund rule for another outcome applies.
FAQs
Is the fee refunded if I voluntarily withdraw?
No. Rule 107(2) expressly says the fee paid shall not be refunded.
Does this provision cancel an existing signed APA?
It concerns withdrawal of the application before finalisation of terms; existing-agreement revision and cancellation are separate matters.
Who receives a bilateral application withdrawal?
India’s competent authority, under sub-rule (1).
Glossary
- Withdrawal intimation
- The communication by which the applicant withdraws under Rule 107 before finalisation of terms.