{"id":5321,"date":"2018-09-25T00:06:54","date_gmt":"2018-09-24T18:36:54","guid":{"rendered":"http:\/\/carajput.com\/blog\/?p=5321"},"modified":"2021-11-08T15:12:12","modified_gmt":"2021-11-08T09:42:12","slug":"corporate-and-professional-updates-25th-day-of-sep-2018","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/","title":{"rendered":"INCOME TAX ADVANCE RULING PROVISIONS"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69d0f43e216b6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69d0f43e216b6\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#INCOME_TAX_ADVANCE_RULING_PROVISIONS\" title=\"INCOME TAX ADVANCE RULING PROVISIONS\">INCOME TAX ADVANCE RULING PROVISIONS<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#BRIEF_INTRODUCTION\" title=\"BRIEF INTRODUCTION\">BRIEF INTRODUCTION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#REASONS_FOR_INTRODUCING_ADVANCE_RULINGS\" title=\"REASONS FOR INTRODUCING ADVANCE RULINGS\">REASONS FOR INTRODUCING ADVANCE RULINGS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#MEANING_OF_ADVANCE_RULING\" title=\"MEANING OF ADVANCE RULING\">MEANING OF ADVANCE RULING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#MEANING_OF_APPLICANT\" title=\"MEANING OF APPLICANT\">MEANING OF APPLICANT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#WHO_CAN_SEEK_ADVANCE_RULING\" title=\"WHO CAN SEEK ADVANCE RULING?\">WHO CAN SEEK ADVANCE RULING?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#TYPE_OF_APPLICATION\" title=\"TYPE OF APPLICATION \">TYPE OF APPLICATION <\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#APPLICATION_NOT_ALLOWED\" title=\"APPLICATION NOT ALLOWED\">APPLICATION NOT ALLOWED<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#FORM_OF_APPLICATION_ADVANCE_RULING\" title=\"FORM OF APPLICATION ADVANCE RULING\u00a0\">FORM OF APPLICATION ADVANCE RULING\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#BENEFITS_OF_SCHEME_OF_ADVANCE_RULING\" title=\"BENEFITS OF SCHEME OF ADVANCE RULING\">BENEFITS OF SCHEME OF ADVANCE RULING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#FEES_FOR_FILING_THE_APPLICATION\" title=\"FEES FOR FILING THE APPLICATION\">FEES FOR FILING THE APPLICATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#DOCUMENTS_TO_BE_SUBMITTED_ALONG_WITH_APPLICATION\" title=\"DOCUMENTS TO BE SUBMITTED\u00a0ALONG WITH APPLICATION\">DOCUMENTS TO BE SUBMITTED\u00a0ALONG WITH APPLICATION<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#PERSON_ENTITLED_TO_SIGN_THE_APPLICATION\" title=\"PERSON ENTITLED TO SIGN\u00a0THE APPLICATION\">PERSON ENTITLED TO SIGN\u00a0THE APPLICATION<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#WITHDRAWN_OF_APPLICATION\" title=\"WITHDRAWN OF APPLICATION\">WITHDRAWN OF APPLICATION<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#PROCEDURE_ON_RECEIPT_OF_APPLICATION\" title=\"PROCEDURE ON RECEIPT OF APPLICATION \">PROCEDURE ON RECEIPT OF APPLICATION <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#RESTRICTION_ON_FURTHER_PROCEDURE\" title=\"RESTRICTION ON FURTHER PROCEDURE\">RESTRICTION ON FURTHER PROCEDURE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#APPLICABILITY_OF_ADVANCE_RULING\" title=\"APPLICABILITY OF ADVANCE RULING\">APPLICABILITY OF ADVANCE RULING<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#ADVANCE_RULING_TO_BE_VOID_IN_CERTAIN_CIRCUMSTANCES\" title=\"ADVANCE RULING TO BE VOID IN CERTAIN CIRCUMSTANCES\">ADVANCE RULING TO BE VOID IN CERTAIN CIRCUMSTANCES<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#POWERS_OF_THE_AAR\" title=\"POWERS OF THE AAR\">POWERS OF THE AAR<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#DISCONTINUATION_OF_AUTHORITY_FOR_ADVANCE_RULING\" title=\"DISCONTINUATION OF AUTHORITY FOR ADVANCE RULING\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \">DISCONTINUATION OF AUTHORITY FOR ADVANCE RULING\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#BOARDS_FOR_ADVANCE_RULINGS\" title=\"BOARDS FOR ADVANCE RULINGS\">BOARDS FOR ADVANCE RULINGS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#APPEAL_AGAINST_RULING\" title=\"APPEAL AGAINST RULING\">APPEAL AGAINST RULING<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#IMPORTANT_POINTS\" title=\"IMPORTANT POINTS\">IMPORTANT POINTS<\/a><ul class='ez-toc-list-level-2'><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#COMPOSITION_OF_AUTHORITY_FOR_ADVANCE_RULINGS\" title=\"COMPOSITION OF AUTHORITY FOR ADVANCE RULINGS\">COMPOSITION OF AUTHORITY FOR ADVANCE RULINGS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/carajput.com\/blog\/corporate-and-professional-updates-25th-day-of-sep-2018\/#QUALIFICATION_FOR_APPOINTMENT\" title=\"QUALIFICATION FOR APPOINTMENT\">QUALIFICATION FOR APPOINTMENT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS..png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-13055\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS..png\" alt=\"INCOME TAX ADVANCE RULING PROVISIONS.\" width=\"711\" height=\"398\" \/><\/a><\/p>\n<h1><span class=\"ez-toc-section\" id=\"INCOME_TAX_ADVANCE_RULING_PROVISIONS\"><\/span><span style=\"color: #ff0000;\"><strong><a href=\"https:\/\/www.caindelhiindia.com\/blog\/implication-of-cash-transaction-under-income-tax-act\/\">INCOME TAX<\/a> ADVANCE RULING PROVISIONS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Advance ruling has been internationally recognized as \u201cA more or less binding statement from the revenue authorities upon the voluntary request of\u00a0a non-public\u00a0person, concerning the treatment and consequence\u00a0of 1\u00a0or series of contemplated future actions or transactions.\u201d<\/p>\n<p>The scheme of advance rulings was introduced in India, through the Finance Act, 1993. Section 245N to 245V of the Income-tax Act provides for the dealing in advance rulings, came into force with effect from 1-6-1993.<\/p>\n<p>Advance Ruling means written opinion or authoritative decision by an Authority empowered to render it with\u00a0relation to\u00a0the tax consequences of a transaction or proposed transaction or an assessment in regard thereto.<\/p>\n<p>There are various knowledge sharing materials which are provided by the\u00a0tax\u00a0Department for the update of the member.<\/p>\n<p>These materials serves as a guide to the taxpayers, tax professional &amp; tax authorities while complying with the due compliances.<\/p>\n<p>One such knowledge sharing content is with\u00a0reference to\u00a0provision\u00a0associated with\u00a0advance ruling,\u00a0sort of\u00a0application, Fees for filing\u00a0the applying, Documents to be submitted\u00a0together with\u00a0the application, Procedure to be followed on receipt of application for advance ruling, Restriction on further procedure, Powers of the AAR etc.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BRIEF_INTRODUCTION\"><\/span><span style=\"color: #000080;\"><strong>BRIEF INTRODUCTION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A resident taxpayer might be having taxation issues in relation to a transaction, being undertaken or proposed to be undertaken with a non-resident.<\/p>\n<p>Similarly, a non-resident might be having some taxation issues in relation to transaction, being undertaken or proposed to be undertaken by him in India.<\/p>\n<p>so as\u00a0to induce\u00a0clarification on taxation\u00a0of these\u00a0transactions,\u00a0someone\u00a0can make an application to the Authority for Advance Rulings (\u2018AAR\u2019). Provisions\u00a0referring to\u00a0advance ruling are provided in sections 245N to 245V.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"REASONS_FOR_INTRODUCING_ADVANCE_RULINGS\"><\/span><span style=\"color: #000080;\"><strong>REASONS FOR INTRODUCING ADVANCE RULINGS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Non-Resident investors always want\u00a0to measure\u00a0their liability under the Indian tax laws in\u00a0reference to\u00a0their proposed transactions.<\/p>\n<p>Considering the complexities\u00a0within the\u00a0Indian tax laws,\u00a0the govt.\u00a0introduced the concept of Advance Ruling.<\/p>\n<p>Whenever a taxpayer faces any difficulty regarding\u00a0liabilities\u00a0in respect of proposed transactions, he can easily seek advance ruling from the authority.<\/p>\n<p>Advance ruling helps in settling disputes\u00a0ahead. It helps foreign investors in determining their tax liabilities\u00a0before\u00a0so\u00a0they will\u00a0assess the transaction that they propose to undertake.<\/p>\n<p>It also brings certainty in determining the\u00a0liabilities,\u00a0because the\u00a0ruling given by the Authority for Advance Ruling is binding on the applicant\u00a0still\u00a0as Government authorities.<\/p>\n<p>In this part,\u00a0you&#8217;ll\u00a0gain knowledge about various provisions\u00a0referring to\u00a0advance ruling.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"MEANING_OF_ADVANCE_RULING\"><\/span><span style=\"color: #000080;\"><strong>MEANING OF ADVANCE RULING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<figure id=\"attachment_13057\" aria-describedby=\"caption-attachment-13057\" style=\"width: 750px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-13057\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS.jpg\" alt=\"INCOME TAX ADVANCE RULING PROVISIONS\" width=\"750\" height=\"422\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS.jpg 750w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2018\/09\/INCOME-TAX-ADVANCE-RULING-PROVISIONS-300x169.jpg 300w\" sizes=\"(max-width: 750px) 100vw, 750px\" \/><\/a><figcaption id=\"caption-attachment-13057\" class=\"wp-caption-text\">INCOME TAX ADVANCE RULING PROVISIONS<\/figcaption><\/figure>\n<p>Section 245N(a) gives the definition of \u2018advance ruling\u2019. As per section 245N(a) \u201cAdvance Ruling\u201d means:<\/p>\n<ul>\n<li>Any sought of determination made by the AAR in\u00a0respect of\u00a0a transaction which has been undertaken or is proposed to be undertaken by a non-resident applicant.<\/li>\n<li>A sought of determination made by the AAR in\u00a0respect of the liabilities\u00a0of a non-resident arising out of a transaction which has been undertaken or is proposed to be undertaken by a resident applicant with such non-resident.<\/li>\n<li>A determination by the AAR in\u00a0respect to\u00a0the\u00a0liabilities\u00a0of a resident applicant, arising out\u00a0of 1\u00a0or more transaction valuing Rs.100 crore or more.<\/li>\n<li>A determination or decision by the AAR in respect of\u00a0a problem\u00a0referring to\u00a0computation of total income which is pending before any income-tax authority or the Appellate Tribunal.<\/li>\n<li>It shall include the determination or decision of any question of law or of fact\u00a0regarding\u00a0such computation of total income\u00a0laid out in\u00a0the application.<\/li>\n<li>A determination or decision by the AAR\\ whether\u00a0a meeting, which is proposed to be undertaken by\u00a0any individual\u00a0being a resident or a non-resident, is an impermissible avoidance arrangement as\u00a0said\u00a0in Chapter X-A. [Chapter X-A contains provisions\u00a0regarding\u00a0General Anti-Avoidance Rule (GAAR)].<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"MEANING_OF_APPLICANT\"><\/span><span style=\"color: #000080;\"><strong>MEANING OF APPLICANT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The application for advance ruling\u00a0may be\u00a0made by an applicant as defined in section 245N(b). As per section 245N, the term \u2018applicant\u2019 means &#8211;<\/p>\n<ul>\n<li>A non-resident Indian, undertaking or proposes to undertake a transaction in India.<\/li>\n<li>A resident who has undertaken or proposes to undertake a transaction with a non-resident.<\/li>\n<li>A resident who has undertaken or propose to undertake one or more transactions\u00a0important\u00a0of Rs.100 crore or more in total [vide Notification No. 73, dated 28-11-2014]<\/li>\n<li>A resident falling within notified class or category of persons (presently includes public sector companies).<\/li>\n<li>Any person (resident or non-resident) making an application for determining whether\u00a0an appointment, is an impermissible avoidance agreement as\u00a0stated\u00a0in Chapter X-A (applicable from 1-4-2015).<\/li>\n<\/ul>\n<p>In Union Budget 2017,\u00a0the govt.\u00a0had decided to merge the Authority for Advance Ruling (AAR)# for income-tax, central excise, custom duty\u00a0and repair\u00a0tax. Hence, the meaning of \u2018applicant \u2018is expanded with effect from 1\/4\/2017 to include-<\/p>\n<ul>\n<li>An applicant being defined under section 28E(c) of the Customs Act, 1962;<\/li>\n<li>An applicant being defined under section 23A(c)of the Central Excise Act, 1944;<\/li>\n<li>An applicant being defined under section 96A(b) of the Finance Act, 1994<\/li>\n<\/ul>\n<p>The Finance Act, 2021 has amended provisions of section 245N(b)\u00a0to supply\u00a0that above three points shall be omitted with effect from such date as appointed by the Central Government by notification\u00a0within the\u00a0Official Gazette.<\/p>\n<p>Section 245N to 245V, as provided in Chapter XIX-B, facilitates a scheme for giving advance rulings in respect of transactions involving non-residents and specified residents, with a view to avoid needless litigations and promoting better tax-payer relations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"WHO_CAN_SEEK_ADVANCE_RULING\"><\/span><span style=\"color: #000080;\"><strong>WHO CAN SEEK ADVANCE RULING?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As per Section 245N following persons\u00a0is\u00a0applicant:<\/p>\n<ul>\n<li>A non-resident.<\/li>\n<li>A resident-undertaking proposing to undertake a transaction with a non-resident can obtain advance ruling in respect of any question of law or fact in\u00a0respect to\u00a0the\u00a0liabilities\u00a0of the non-resident arising out of such transaction.<\/li>\n<li>A resident who has undertaken or proposes to undertake one or more transactions\u00a0making Rs. 100 crore or more in aggregate, can obtain advance ruling in respect of any question of law or fact in\u00a0regard to\u00a0the\u00a0liabilities\u00a0of the resident arising out of such transaction<\/li>\n<li>A notified public-sector company.<\/li>\n<li>Any person, being a resident or non-resident, can obtain an advance ruling\u00a0to determine\u00a0whether\u00a0a meeting\u00a0proposed to be undertaken by him is an impermissible avoidance arrangement\u00a0and should\u00a0be subjected to General Anti Avoidance Rules or not.<\/li>\n<li>An applicant being defined under section 28E(c) of the Customs Act, 1962<\/li>\n<li>An applicant being defined under section 23A(c) of the Central Excise Act, 1944<\/li>\n<li>An applicant being defined under section 96A(b) of the Finance Act, 1994.<\/li>\n<\/ul>\n<h1><span class=\"ez-toc-section\" id=\"TYPE_OF_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>TYPE OF APPLICATION <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>After understanding the meaning of \u201cAdvance Ruling \u201cand \u201cApplicant\u201d,\u00a0it&#8217;s\u00a0important\u00a0to grasp\u00a0the character\u00a0of application\u00a0which might\u00a0be made by an applicant. Following Chart highlights\u00a0the character\u00a0of application\u00a0which may\u00a0be made by various applicants:<\/p>\n<table style=\"height: 1369px;\" width=\"707\">\n<tbody>\n<tr>\n<td width=\"309\"><span style=\"color: #000080;\"><strong>TYPE OF APPLICANT<\/strong><\/span><\/td>\n<td width=\"356\"><span style=\"color: #000080;\"><strong>APPLICATION FORM<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"309\"><strong>NON-RESIDENT OF INDIA<\/strong><\/td>\n<td width=\"356\">A DETERMINATION BY THE AAR IN RELATION TO A TRANSACTION WHICH HAS BEEN UNDERTAKEN OR IS PROPOSED TO BE UNDERTAKEN BY A NON-RESIDENT APPLICANT. SUCH DETERMINATION SHALL INCLUDE THE DETERMINATION OF ANY QUESTION OF LAW OR OF FACT SPECIFIED IN THE APPLICATION.<\/td>\n<\/tr>\n<tr>\n<td width=\"309\"><strong>RESIDENT INDIAN UNDERTAKING A TRANSACTION WITH NON-RESIDENT OR PROPOSES TO UNDERTAKE A TRANSACTION WITH NON-RESIDENT.<\/strong><\/td>\n<td width=\"356\">A DETERMINATION BY THE AAR\u00a0IN RELATION TO THE TAX LIABILITY OF A NON-RESIDENT\u00a0ARISING OUT OF A TRANSACTION WHICH HAS BEEN UNDERTAKEN OR IS PROPOSED TO BE UNDERTAKEN BY A RESIDENT APPLICANT WITH SUCH NON-RESIDENT. SUCH DETERMINATION SHALL INCLUDE THE DETERMINATION OF ANY QUESTION OF LAW OR OF FACT SPECIFIED IN THE APPLICATION.<\/td>\n<\/tr>\n<tr>\n<td width=\"309\"><strong>RESIDENT INDIAN UNDERTAKING OR PROPOSE TO UNDERTAKE ONE OR MORE TRANSACTIONS OF VALUE OF RS.100 CRORE OR MORE IN AGGREGATE.<\/strong><\/td>\n<td width=\"356\">A DETERMINATION BY THE AAR IN RELATION TO THE TAX LIABILITY OF A RESIDENT APPLICANT ARISING OUT OF SUCH TRANSACTIONS AND SUCH DETERMINATION SHALL INCLUDE THE DETERMINATION OF ANY QUESTION OF LAW OR OF FACT SPECIFIED IN THE APPLICATION.<\/td>\n<\/tr>\n<tr>\n<td width=\"309\"><strong>RESIDENT INDIAN FALLING WITHIN NOTIFIED CLASS OR CATEGORY OF PERSONS (I.E., A PUBLIC SECTOR COMPANY).<\/strong><\/td>\n<td width=\"356\">A DETERMINATION OR DECISION BY THE AUTHORITY IN RESPECT OF AN ISSUE RELATING TO COMPUTATION OF TOTAL INCOME WHICH IS PENDING BEFORE ANY INCOME-TAX AUTHORITY OR THE APPELLATE TRIBUNAL AND SUCH DETERMINATION OR DECISION SHALL INCLUDE THE DETERMINATION OR DECISION OF ANY QUESTION OF LAW OR OF FACT RELATING TO SUCH COMPUTATION OF TOTAL INCOME SPECIFIED IN THE APPLICATION.<\/td>\n<\/tr>\n<tr>\n<td width=\"309\"><strong>ANY PERSON MAKING AN APPLICATION FOR DETERMINATION OF WHETHER AN ARRANGEMENT IS AN IMPERMISSIBLE AVOIDANCE AGREEMENT AS REFERRED TO IN CHAPTER X-A. (APPLICABLE FROM 1-4-2015)<\/strong><\/td>\n<td width=\"356\">A DETERMINATION OR DECISION BY THE AUTHORITY WHETHER AN ARRANGEMENT, WHICH IS PROPOSED TO BE UNDERTAKEN BY ANY PERSON BEING A RESIDENT OR A NON-RESIDENT, IS AN IMPERMISSIBLE AVOIDANCE ARRANGEMENT AS REFERRED TO IN CHAPTER X-A. (APPLICABLE FROM. 1-4-2015)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"APPLICATION_NOT_ALLOWED\"><\/span><span style=\"color: #000080;\"><strong>APPLICATION NOT ALLOWED<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In following circumstances,\u00a0the application\u00a0isn&#8217;t\u00a0allowed by the AAR:<\/p>\n<ul>\n<li>Where the question relates to any pending case already existing before any income-tax authority or appellate tribunal or any Court.<\/li>\n<li>However, exception will apply\u00a0within the\u00a0case of a resident applicant falling within the notified class or category of persons i.e., a public sector company.<\/li>\n<li>when the question involves determination of fair\u00a0value\u00a0of any property.<\/li>\n<li>when the question relates to a transaction which\u00a0is intended\u00a0clear\u00a0for the avoidance of income-tax. Exception\u00a0to the current\u00a0provision:<\/li>\n<li>(I) resident taxpayer falling within notified class or category of persons i.e., a public sector company and (ii)\u00a0someone\u00a0(i.e., resident or non-resident) making an application\u00a0to see\u00a0whether\u00a0a meeting\u00a0proposed to be undertaken is an impermissible avoidance arrangement under Chapter X-A.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"FORM_OF_APPLICATION_ADVANCE_RULING\"><\/span><span style=\"color: #000080;\"><strong>FORM OF APPLICATION ADVANCE RULING\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The application of advance ruling is to be made\u00a0within the\u00a0form prescribed\u00a0during this\u00a0regard. Different forms are prescribed\u00a0for various\u00a0applicants.<\/p>\n<p>Following Chart highlights\u00a0the shape\u00a0of application applicable to different applicants.<\/p>\n<table style=\"height: 943px;\" width=\"705\">\n<tbody>\n<tr>\n<td width=\"313\"><span style=\"color: #000080;\"><strong>APPLICANT<\/strong><\/span><\/td>\n<td width=\"350\"><span style=\"color: #000080;\"><strong>FORM OF APPLICATION<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"313\"><strong>A NON-RESIDENT APPLICANT.<\/strong><\/td>\n<td width=\"350\">FORM NO. 34C (APPLICATION SHOULD BE IN QUADRUPLICATE)<\/td>\n<\/tr>\n<tr>\n<td width=\"313\"><strong>A RESIDENT SEEKING ADVANCE RULING IN RELATION TO A TRANSACTION UNDERTAKEN OR PROPOSED TO BE UNDERTAKEN BY HIM WITH A NON-RESIDENT.<\/strong><\/td>\n<td width=\"350\">FORM NO. 34D (APPLICATION SHOULD BE IN QUADRUPLICATE)<\/td>\n<\/tr>\n<tr>\n<td width=\"313\"><strong>A RESIDENT SEEKING ADVANCE RULING IN RELATION TO HIS TAX LIABILITY ARISING OUT OF ONE OR MORE TRANSACTIONS VALUING RS. 100 CRORE OR MORE IN TOTAL WHICH HAS BEEN UNDERTAKEN OR PROPOSED TO BE UNDERTAKEN BY HIM<\/strong><\/td>\n<td width=\"350\">FORM NO. 34DA (APPLICATION SHOULD BE IN QUADRUPLICATE)<\/td>\n<\/tr>\n<tr>\n<td width=\"313\"><strong>A RESIDENT FALLING WITHIN ANY SUCH CLASS OR CATEGORY OF PERSON AS IS NOTIFIED BY CENTRAL GOVERNMENT (I.E., A PUBLIC SECTOR COMPANY)<\/strong><\/td>\n<td width=\"350\">FORM NO. 34E (APPLICATION SHOULD BE IN QUADRUPLICATE)<\/td>\n<\/tr>\n<tr>\n<td width=\"313\"><strong>ANY PERSON (RESIDENT OR NON-RESIDENT) MAKING AN APPLICATION FOR DETERMINATION OF WHETHER AN ARRANGEMENT, IS AN IMPERMISSIBLE AVOIDANCE AGREEMENT AS REFERRED TO IN CHAPTER X-A. (APPLICABLE FROM 1-4-2015)<\/strong><\/td>\n<td width=\"350\">FORM NO. 34EA (APPLICATION SHOULD BE IN QUADRUPLICATE)<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"BENEFITS_OF_SCHEME_OF_ADVANCE_RULING\"><\/span><span style=\"color: #000080;\"><strong>BENEFITS OF SCHEME OF ADVANCE RULING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>Determination of\u00a0liabilities\u00a0ahead.<\/li>\n<li>Reducing Litigation.<\/li>\n<li>Attract Foreign Direct Investment.<\/li>\n<li>It is inexpensive.<\/li>\n<li>Rulings are binding on the applicant\u00a0additionally\u00a0because the\u00a0department.<\/li>\n<li>Rulings are pronounced within six months from the date of receipt of application.<\/li>\n<\/ol>\n<p>Thus, so as to produce the power of ascertaining the Income-tax liability of a non-resident, to plan their Income-tax affairs well earlier and to avoid long drawn and expensive litigation.<\/p>\n<p>the scheme of Advance Rulings has been introduced to cater to above problem face under the Income-tax Act, 1961.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"FEES_FOR_FILING_THE_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>FEES FOR FILING THE APPLICATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The fees payable together with application for advance ruling shall be in accordance with the subsequent table:<\/p>\n<table style=\"height: 786px;\" width=\"703\">\n<tbody>\n<tr>\n<td width=\"220\"><span style=\"color: #000080;\"><strong>CATEGORY OF APPLICANT<\/strong><\/span><\/td>\n<td width=\"318\"><span style=\"color: #000080;\"><strong>CATEGORY OF CASE<\/strong><\/span><\/td>\n<td width=\"124\"><span style=\"color: #000080;\"><strong>FEES<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td rowspan=\"3\" width=\"220\"><strong>A NON-RESIDENT APPLICANT. A RESIDENT SEEKING<br \/>\nADVANCE RULING IN RELATION TO THE TAX LIABILITY OF A NON-RESIDENT ARISING OUT OF TRANSACTION UNDERTAKEN OR PROPOSED TO BE UNDERTAKEN BY HIM WITH A NON-<br \/>\nRESIDENT.A RESIDENT SEEKING ADVANCE RULING IN RELATION TO HIS TAX LIABILITY ARISING OUT OF ONE OR MORE TRANSACTIONS VALUING RS.100 CRORE OR MORE IN TOTAL WHICH HAS BEEN UNDERTAKEN OR IS PROPOSED TO BE UNDERTAKEN BY HIM<\/strong><\/td>\n<td width=\"318\">AMOUNT OF ONE OR MORE TRANSACTION, ENTERED INTO OR PROPOSED TO BE UNDERTAKEN, IN RESPECT OF WHICH RULING IS SOUGHT DOES NOT EXCEED RS. 100 CRORES.<\/td>\n<td width=\"124\">RS.2,00,000<\/td>\n<\/tr>\n<tr>\n<td width=\"318\">AMOUNT OF ONE OR MORE TRANSACTION, ENTERED INTO OR PROPOSED TO BE UNDERTAKEN, IN RESPECT OF WHICH RULING IS SOUGHT EXCEEDS RS. 100 CRORES BUT DOES NOT EXCEED RS. 300 CRORES.<\/td>\n<td width=\"124\">RS.5,00,000<\/td>\n<\/tr>\n<tr>\n<td width=\"318\">AMOUNT OF ONE OR MORE TRANSACTION, ENTERED INTO OR PROPOSED TO BE UNDERTAKEN, IN RESPECT OF WHICH RULING IS SOUGHT EXCEEDS RS. 300 CRORES<\/td>\n<td width=\"124\">RS.10,00,000<\/td>\n<\/tr>\n<tr>\n<td width=\"220\"><strong>ANY OTHER APPLICANT<\/strong><\/td>\n<td width=\"318\">IN ALL CASES<\/td>\n<td width=\"124\">RS.10,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"DOCUMENTS_TO_BE_SUBMITTED_ALONG_WITH_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>DOCUMENTS TO BE SUBMITTED\u00a0ALONG WITH APPLICATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ol>\n<li>4 copies of application\u00a0within the\u00a0prescribed form.<\/li>\n<li>An account-payee demand draft issued in respect of the amount of prescribed fees and made in favour of \u2018Authority for Advance Ruling\u2019s payable at\u00a0Indian capital.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"PERSON_ENTITLED_TO_SIGN_THE_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>PERSON ENTITLED TO SIGN\u00a0THE APPLICATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The application shall be signed by \u2013<\/p>\n<ol>\n<li>In The\u00a0Case of\u00a0An Individual\u00a0\u2013<\/li>\n<\/ol>\n<ul>\n<li>By the individual himself;<\/li>\n<li>Where, for any unavoidable reason,\u00a0it&#8217;s\u00a0unacceptable\u00a0for the individual to sign\u00a0the application,\u00a0the applying\u00a0will be\u00a0signed by\u00a0any individual\u00a0duly authorised by the individual\u00a0during this\u00a0behalf.<\/li>\n<li>However, in such a case, the person signing\u00a0the applying\u00a0shall hold\u00a0a legitimate\u00a0power of attorney from the individual\u00a0to try and do\u00a0so, which shall be attached to\u00a0the application.<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>In The\u00a0Case of HUF \u2013<\/li>\n<\/ol>\n<ul>\n<li>By the Karta thereof, and<\/li>\n<li>Where, for any unavoidable reason,\u00a0it&#8217;s\u00a0impracticable\u00a0for the Karta to sign\u00a0the applying, by\u00a0the other\u00a0adult member of such family.<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>In The\u00a0Case of\u00a0An Organization\u00a0\u2013<\/li>\n<\/ol>\n<ul>\n<li>by the\u00a0manager\u00a0thereof, or where for any unavoidable reason such\u00a0decision maker\u00a0isn&#8217;t\u00a0able to\u00a0sign and verify\u00a0the applying, or where\u00a0there&#8217;s\u00a0no\u00a0decision maker, by any Director thereof;<\/li>\n<li>Where, for any unavoidable reason,\u00a0it&#8217;s\u00a0uphill\u00a0for the\u00a0decision maker\u00a0or the Director to sign\u00a0the application, by\u00a0any individual\u00a0duly authorised by\u00a0the corporate\u00a0during this\u00a0behalf.<\/li>\n<li>However, in such a case, the person signing\u00a0the applying\u00a0shall hold\u00a0a sound\u00a0power of attorney from\u00a0the corporate\u00a0to try and do\u00a0so, which shall be attached to\u00a0the applying.<\/li>\n<\/ul>\n<ol start=\"4\">\n<li>In The Case of a Firm \u2013<\/li>\n<\/ol>\n<ul>\n<li>by the managing partner of the firm.<\/li>\n<li>Where for any unavoidable reason such managing partner\u00a0isn&#8217;t\u00a0ready to\u00a0sign and verify\u00a0the application\u00a0or where\u00a0there&#8217;s\u00a0no managing partner\u00a0in and of itself, by any partner of the firm\u00a0apart from\u00a0a minor.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>In Case of An Association of Persons \u2013The signatory to the application, shall be the member of the association or the principal officer appointed.<\/li>\n<li>In Case of The Other Person \u2013 The signatory to the application, shall be such person or some other person competent to act on behalf of such person.<\/li>\n<\/ol>\n<h1><span class=\"ez-toc-section\" id=\"WITHDRAWN_OF_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>WITHDRAWN OF APPLICATION<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>Application once made by the applicant\u00a0may be\u00a0withdrawn within a period of 30 days from the date of application.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"PROCEDURE_ON_RECEIPT_OF_APPLICATION\"><\/span><span style=\"color: #000080;\"><strong>PROCEDURE ON RECEIPT OF APPLICATION <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On receipt of an application, the AAR shall send\u00a0a replica\u00a0thereof to the Principal Commissioner or Commissioner and, if necessary, will call upon him to furnish the relevant records.<\/p>\n<p>Where any records\u00a0are\u00a0caught up\u00a0by the Authority in any case, such records shall, as soon as possible, be returned to the Principal Commissioner or Commissioner.<\/p>\n<p>The Authority may, after examining\u00a0the applying\u00a0and therefore the\u00a0records\u00a0immersed\u00a0from the Commissioner, either allow or reject\u00a0the applying.<\/p>\n<p>However, the AAR may not allow the filing application\u00a0in certain circumstances. However, no application shall be rejected unless\u00a0a chance\u00a0has been given to the applicant of being heard.<\/p>\n<p>Where\u00a0the applying\u00a0is rejected, reasons for such rejection shall\u00a0tend\u00a0within the\u00a0order.\u00a0a duplicate\u00a0of each\u00a0such order shall be sent, both to the applicant and to the Principal Commissioner or Commissioner.<\/p>\n<p>Where an application is allowed, the AAR shall, after examining such further material as\u00a0could also be\u00a0placed before it by the applicant or obtained by the AAR, pronounce its advance ruling on the question\u00a0laid out in\u00a0the application.<\/p>\n<p>On\u00a0a call for participation\u00a0received from the applicant, the AAR shall, before pronouncing its advance ruling, provide\u00a0a chance\u00a0to the applicant of being heard, either\u00a0in person or through an authorized representative.<\/p>\n<p>The AAR shall pronounce its advance ruling in writing within six months of the receipt of application.<\/p>\n<p>A copy of the advance ruling pronounced by the AAR, duly signed by the Members\u00a0and authorized\u00a0within the\u00a0prescribed manner shall be sent to the applicant as well as to the Principal Commissioner or Commissioner, on an immediate basis, after such pronouncement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"RESTRICTION_ON_FURTHER_PROCEDURE\"><\/span><span style=\"color: #000080;\"><strong>RESTRICTION ON FURTHER PROCEDURE<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>No income-tax authority or the Appellate Tribunal shall proceed\u00a0to determine\u00a0any issue in\u00a0regard to\u00a0which an application has been made to the AAR by an applicant, being a resident.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"APPLICABILITY_OF_ADVANCE_RULING\"><\/span><span style=\"color: #000080;\"><strong>APPLICABILITY OF ADVANCE RULING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The advance ruling pronounced by the AAR shall be binding only on the applicant who had sought it\u00a0which\u00a0too in respect of the transaction in\u00a0respect to\u00a0which the ruling had been sought.<\/p>\n<p>Further, it shall be binding on the Principal Commissioner or Commissioner\u00a0and also the\u00a0Income-tax authorities subordinate to him, in respect of the applicant\u00a0and therefore the\u00a0said transaction.<\/p>\n<p>The advance ruling pronouncement as stated above shall be binding as aforesaid, unless\u00a0there&#8217;s\u00a0a change, in law, or facts on\u00a0the idea\u00a0of which the advance ruling was pronounced.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"ADVANCE_RULING_TO_BE_VOID_IN_CERTAIN_CIRCUMSTANCES\"><\/span><span style=\"color: #000080;\"><strong>ADVANCE RULING TO BE VOID IN CERTAIN CIRCUMSTANCES<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Where the AAR finds, on a representation made thereto by the Principal Commissioner or Commissioner or otherwise, that an advance ruling pronounced by it&#8217;s been obtained by the applicant by fraud or misrepresentation of facts, then the Authority may, by an order, declare such ruling to be void at first and thereupon all the provisions of the Act shall apply to the applicant just like, in case no advance ruling be made by such applicant.<\/p>\n<p>A copy of the said order shall be served to the applicant as well as to the Principal Commissioner or Commissioner.<\/p>\n<h1><span class=\"ez-toc-section\" id=\"POWERS_OF_THE_AAR\"><\/span><span style=\"color: #000080;\"><strong>POWERS OF THE AAR<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>The AAR shall, for\u00a0the aim\u00a0of exercising its powers, have all the powers of a civil court under the Code of Civil Procedure, 1908 as are\u00a0mentioned\u00a0in section 131 of this Act.<\/p>\n<p>Powers vested under section 131 are discovery and inspection, enforcing the attendance of\u00a0any individual, including any officer of a\u00a0financial organisation\u00a0and examining him on oath, compelling\u00a0the assembly\u00a0of books of account and other documents, and issuing commissions.<\/p>\n<p>it&#8217;ll\u00a0even have\u00a0the facility\u00a0to control\u00a0its own proceeding\u00a0altogether\u00a0the matters arising out of the exercise of its powers under the Income-tax Act.<\/p>\n<p>The AAR shall be deemed to be a civil court for\u00a0the needs\u00a0of section 195 but not for\u00a0the needs\u00a0of Chapter XXVI of the Code of Criminal Procedure, 1973\u00a0and each\u00a0proceeding before the Authority shall be deemed to be a\u00a0proceeding\u00a0under certain provisions of the Indian\u00a0legal code.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"DISCONTINUATION_OF_AUTHORITY_FOR_ADVANCE_RULING\"><\/span><strong><span style=\"color: #000080;\">DISCONTINUATION OF AUTHORITY FOR ADVANCE RULING\u00a0<\/span> \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Finance Bill, 2021 has\u00a0as long as\u00a0the Authority for Advance Rulings shall cease\u00a0to control\u00a0with effect from such date, as\u00a0is also\u00a0notified by the Central Government\u00a0within the\u00a0Official Gazette.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"BOARDS_FOR_ADVANCE_RULINGS\"><\/span><span style=\"color: #000080;\"><strong>BOARDS FOR ADVANCE RULINGS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To provide another method of providing prompt advance ruling to the taxpayers, the Finance Bill, 2021 has inserted a brand-new Section 245-OB to empower the Central Government to constitute one or more Board to be termed as Advance Rulings Board, to provide advance rulings on and after the said date.<\/p>\n<p>Every such Board shall encompass two members, each being an official not below the rank of Chief Commissioner.<\/p>\n<p>Consequential amendments\u00a0are\u00a0made under relevant sections of Authority for Advance Rulings\u00a0to supply\u00a0a reference of Board for Advance Rulings.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"APPEAL_AGAINST_RULING\"><\/span><span style=\"color: #000080;\"><strong>APPEAL AGAINST RULING<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A new section 245W is inserted by the Finance Act, 2021\u00a0to produce\u00a0for appeal to\u00a0supreme court\u00a0against the order passed or ruling pronounced by the Board for Advance Ruling, as per the directions of PCIT or CIT.<\/p>\n<p>This appeal\u00a0may be\u00a0filed by the applicant\u00a0yet\u00a0as by the Department. Such appeal shall be filed within 60 days from the date of the communication of such ruling or order, in such form and manner as\u00a0is also\u00a0prescribed.<\/p>\n<p>However, where the\u00a0judicature\u00a0is satisfied, on an application made\u00a0during this\u00a0behalf, that the appellant was prevented by sufficient cause from presenting the appeal within\u00a0the amount\u00a0per\u00a0this section,\u00a0it should\u00a0allow\u00a0an extra\u00a0period of 30 days for filing such appeal.<\/p>\n<p>The Central Government is empowered to provide for a scheme for filing of appeal by the Assessing Officer in order to have greater efficiency, transparency and accountability by optimising the utilisation of resources by means of economies of scale along with functional specialisation and introducing a system with dynamic jurisdiction.<\/p>\n<p>The Central Government may,\u00a0to provide\u00a0effect to the scheme, by notification\u00a0within the\u00a0Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as\u00a0is also\u00a0laid out in\u00a0the notification.<\/p>\n<p>Every such notification shall, as soon as\u00a0is also\u00a0after the notification is issued, be laid before each House of Parliament.<\/p>\n<h1><span class=\"ez-toc-section\" id=\"IMPORTANT_POINTS\"><\/span><span style=\"color: #000080;\"><strong>IMPORTANT POINTS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<ol>\n<li>As per the Finance Act\u2019 2017 the following points have been inserted under section 245-O &#8211;<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>In the\u00a0event of the occurrence of any vacancy\u00a0within the\u00a0office of the Chairman by reason of his death, resignation or otherwise, the senior-most Vice-chairman shall act\u00a0because the\u00a0Chairman until the date on which\u00a0a replacement\u00a0Chairman, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office.<\/li>\n<li>just in case\u00a0the Chairman is unable to discharge his functions\u00a0due to\u00a0absence, illness or\u00a0the other\u00a0cause, the senior-most Vice-Chairman shall discharge the functions as a Chairman till the date by which such Chairman resumes their duties.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"2\">\n<li>Further Section 245-O\u00a0to control\u00a0the Qualifications, terms and conditions of service of Chairman, Vice-Chairman and Members.<\/li>\n<\/ol>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>The qualifications, appointment, term of office, salaries and allowances, resignation, removal and therefore the other terms and conditions of service of the chairman, Vice-Chairman and other members of the authority appointed after 26.05.2017, being the date on which the provisions of part XIV of chapter VI of the Finance Act\u20192017 came into force, would be governed by the provisions of section 184 of Finance Act\u2019 2017.<\/li>\n<li>However, the chairman, Vice-Chairman and member appointed before 26.05.2017 would\u00a0still\u00a0be governed by the provisions of the\u00a0taxation\u00a0Act\u2019 1961\u00a0and therefore the\u00a0rules made there under as if the provisions of section 184 of the Finance Act\u2019 2017 had not\u00a0inherit\u00a0force.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ol start=\"3\">\n<li>Vacancies, etc., to not invalidate proceedings: No proceeding before, or pronouncement of advance ruling by, the Authority shall be questioned or shall be invalid on the bottom merely of the existence of any vacancy or defect within the constitution of the Authority.<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"COMPOSITION_OF_AUTHORITY_FOR_ADVANCE_RULINGS\"><\/span><span style=\"color: #000080;\"><strong>COMPOSITION OF AUTHORITY FOR ADVANCE RULINGS<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li>The Central Government is required to constitute an Authority for providing advance rulings, and they shall be termed as\u00a0\u201cAuthority for Advance Rulings\u201d:<\/li>\n<li>Provided that the Authority shall cease to act as an Authority for Advance Rulings for\u00a0the needs\u00a0of Chapter V of the Customs Act, 1962 on and from the date when such person is appointed by the Customs Authority as the Advance Rulings under section 28EA of that Act.<\/li>\n<li>On and from the date of appointment of the Customs Authority for Advance Rulings referred above, the Authority shall act as an Appellate Authority, for\u00a0the aim\u00a0of Chapter V of the Customs Act, 1962.<\/li>\n<li>The Authority shall\u00a0comprise\u00a0a boss\u00a0and such number of Vice-chairmen, revenue Members and law Members\u00a0because the\u00a0Central Government may, by notification, appoint.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"QUALIFICATION_FOR_APPOINTMENT\"><\/span><span style=\"color: #000080;\"><strong>QUALIFICATION FOR APPOINTMENT<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<table style=\"height: 590px;\" width=\"701\">\n<tbody>\n<tr>\n<td width=\"168\"><strong>CHAIRMAN<\/strong><\/td>\n<td width=\"351\">WHO HAS BEEN A JUDGE OF THE SUPREME COURT\u00a0OR THE CHIEF JUSTICE OF A HIGH COURT OR FOR AT LEAST SEVEN YEARS A JUDGE OF A HIGH COURT?<\/td>\n<\/tr>\n<tr>\n<td width=\"168\"><strong>VICE- CHAIRMAN<\/strong><\/td>\n<td width=\"351\">WHO HAS BEEN JUDGE OF A HIGH COURT?<\/td>\n<\/tr>\n<tr>\n<td width=\"168\"><strong>REVENUE MEMBER<\/strong><\/td>\n<td width=\"351\">(I) FROM THE INDIAN REVENUE SERVICE, WHO IS, OR IS QUALIFIED TO BE, A MEMBER OF THE BOARD; OR<\/p>\n<p>(II) FROM THE INDIAN CUSTOMS AND CENTRAL EXCISE SERVICE, WHO IS, OR IS QUALIFIED TO BE, A MEMBER OF THE CENTRAL BOARD OF EXCISE AND CUSTOMS, ON THE DATE OF OCCURRENCE OF VACANCY.<\/td>\n<\/tr>\n<tr>\n<td width=\"168\"><strong>LAW MEMBER<\/strong><\/td>\n<td width=\"351\">FROM THE INDIAN LEGAL SERVICE, WHO IS, OR IS QUALIFIED TO BE, AN ADDITIONAL SECRETARY TO THE GOVERNMENT OF INDIA\u00a0ON THE DATE OF OCCURRENCE OF VACANCY.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>INCOME TAX ADVANCE RULING PROVISIONS Advance ruling has been internationally recognized as \u201cA more or less binding statement from the revenue authorities upon the voluntary request of\u00a0a non-public\u00a0person, concerning the treatment and consequence\u00a0of 1\u00a0or series of contemplated future actions or transactions.\u201d The scheme of advance rulings was introduced in India, through the Finance Act, 1993. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[5783,9956],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5321"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=5321"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5321\/revisions"}],"predecessor-version":[{"id":18490,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/5321\/revisions\/18490"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=5321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=5321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=5321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}