Q.: What is Authority for Advance Rulings (AAR)?
Q.: what is Constitution of AAR in India?
Q.: What is advance ruling?
Advance ruling is basically a written interpretation of tax laws, as made by a Advance Ruling Authority. it’s issued by tax authorities to corporations and individuals who request for clarification of certain tax matters. An advance ruling is usually requested when the taxpayer is confused and unsure about certain provisions. Advance tax ruling is applied for: before starting the proposed activity. as an example, under taxation, advance ruling is obtainable in international taxation. this is often to assist non-residents ascertain the income-tax liability, plan their income-tax beforehand and avoid long drawn and dear legal disputes. As per GST, the advance ruling could be a written decision given by the tax authorities to an applicant on questions referring to the provision of goods/services.
Q.: Why is advance ruling under GST necessary?
The objectives of any advance ruling, as provided under GST Act are as follows –
Q.: When can one request for GST Advance Ruling?
Any taxpayer can request for advance ruling when he’s uncertain of the provisions. Advance tax ruling shall be applicable in respect of – (a) Classification of goods or services or both, under the Act (b) Applicability of a notification which affects the speed of tax (c) Determination of your time and value of supply of goods/services (d) Whether input reduction paid (or deemed to be paid) are going to be allowed (e) Determination of the liability to pay tax on any goods/services (f) Whether the applicant needs to be registered under GST (g) Whether any particular thing done by the applicant regarding goods/services will end in a supply.
Q.: What’s is Procedure on receipt of application?
On receipt of an application, a replica is going to be forwarded to the prescribed officer and he will furnish the mandatory relevant records.
Q.: What is Process of Advance Ruling under GST?
An advance ruling application is required to be sent to Authority for Advance Ruling. In case any individual is unhappy with the advance ruling, the same can appeal to the Appellate Authority for Advance Ruling.
Application for Advance ruling should be made in FORM GST ARA-01 together with Rs. 5,000.
The Authority may make an order, thereby admitting or rejecting the application made by the aggrieved person.
Q.: Will all applications be allowed?
The Authority won’t admit the application when- (b) the identical matter has already been decided in an earlier case for the applicant (c) the identical matter is already pending in any proceedings for the applicant Basically, Advance Ruling won’t be possible in any pending case or any decision already given. Applications are going to be rejected only after giving a chance of being heard. Reasons for rejection shall tend in writing.
Q.: When will the authority give their decision?
Advance ruling decision are given within 90 days from application. If the members of the Authority differ in opinion on any point, they’ll refer the purpose to the Appellate Authority. Advance Ruling will have prospective effect only.
Q.: On whom will the advance ruling apply?
The advance ruling is going to be binding only – (a) On the applicant (b) On the jurisdictional tax authorities in respect of the applicant. If the law, facts of the first advance ruling change then the advance ruling won’t apply.
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