Operationalisation of the Board for Advance Rulings
Posted On: 19 AUG 2023 12:35PM by PIB Delhi (View Source Documents)
The Central Board of Direct Taxes constituted three Boards for Advance Rulings in September, 2021. Further, by Notification No. 07 of 2022, the Scheme of E-advance Ruling was introduced with an objective to make the entire process of advance rulings with a minimal interface and impart greater efficiency, transparency and accountability.
Subsequently, the Boards for Advance Rulings have been operationalised in Delhi and Mumbai. These Boards started functioning through e-mail-based procedures and conducting hearing through video conferencing.
A non-resident investor can obtain certainty on its liability towards income tax even before undertaking the investment in India. Further, even a resident entity can obtain a Ruling on the taxability of a transaction and avoid long-drawn litigation, as the Scheme is also available to a resident taxpayer seeking an advance ruling concerning its tax liability arising out of one or more transactions, valuing Rs.100 crore or more in total. Public Sector Undertakings can take advantage of getting advance rulings on questions of facts or law pending before any income-tax authority or Appellate Tribunal.
To provide general guidance and assistance to the taxpayers on the procedure to seek Advance Rulings, a Handbook of the Board for Advance Rulings has been released by the Chairman, CBDT on 18th of August, 2023. The Handbook can be accessed at https://incometaxindia.gov.in/pages/international-taxation/advance-ruling.aspx.
On this occasion, Chairman, CBDT laid emphasis on the priorities of the government in the area of dispute prevention and prompt resolution of disputes. Creation of mechanisms like the Board for Advance Rulings is a step in this direction.
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PPG/KMN(Release ID: 1950361) (View Source Documents)
Related contents:
Advance Rulings
Handbook of Board for Advance Rulings (BAR)
Application Forms for Advance Rulings
- Form 34C – Form of application by a non-resident applicant for obtaining an advance ruling under section 245Q(1) of the Income-tax Act, 1961
- Form 34D – Form of application by a resident applicant for seeking an advance ruling in relation to a transaction undertaken or proposed to be undertaken by him with a non-resident, under section 245Q(1) of the Income-tax Act, 1961
- Form 34DA – Form of application by a resident applicant for seeking an advance ruling, in relation to a transaction which has been undertaken or is proposed to be undertaken, under section 245Q(1) of the Income-tax Act, 1961
- Form 34E – Form of application by a resident falling within such class or category of persons as notified by Central Government for obtaining an advance ruling under section 245Q(1) of the Income-tax Act, 1961
- Form 34EA – Form of application by a person for obtaining an advance ruling under section 245Q(1) of the Income-tax Act, 1961
