*IMPORTANT FOR CS* Summary of Advance Ruling for CS Executive and Final syllabus (READ AND SHARE) #Revision Section 245 N Power of AR is rested with an Independent Abjudicating Authority known as Authority of Advance Ruling binding on the applicant and Income tax department. Transactions 1. By a Non resident 2. By a resident having transaction with that Non Resident (Calculating Tax liability of Non resident) 3. Determination of Total Income from any issue pending before any Income Tax Authority/Appellate Tribunal Who may seek AAR? Non Resident, Resident having transaction with non residents, specified categories of Resident. Authority for Advance ruling 1. Chairman, a retired Judge of Supreme Court 2. An officer of Indian Legal Revenue services who is qualified to be a member of CBDT 3. An officer of Indian Legal Revenue services who is qualified to be an additional Secretary of Govt of India Proceeding of the authority – If any or both of 2 and 3 in previous head is absent due to illness or due to any other reason/cause and if the case can not be adjourned then 1 or either 2 or 3 are empowered to carry out the authority. In case there is difference in the opinions then the opinion with majority shall prevail. Chairman”s opinion will prevail incase there is division in opinions. 245P No proceeding shall be questioned / invalid on a ground merely that there is vancy or defect in the constitution of the authority. Application for Advance Ruling Application + 10000 Fee (May withdraw the application in 30 days from the date of application, if required) 34C - Application for a non resident 34D – Application for a resident having transaction with Non Resident 34E – For a Notified resident On Receipt of an Application, one copy is forwarded to Commissioner having jurisdiction over the case; if it is difficult to determine the commissioner then CBDT is requested to appoint the same in 2 weeks. Application if gets admitted then the authority has power to ask n call for further required materials. Application if gets rejected then an opportunity of being heard is granted. Ruling shall be passed in period of 6 months after receiving an application. Features of Advance Ruling AR is available for income tax act, Excise, and Customs. Applicant should be relevant/ party of the transaction There can be question/questions in the applications Question of law or fact or mix of both Each should be drafted in such a manner that they are capable of being answered; Complex questions should be divided into simple parts No hypothetical questions, they are normally not amended but in deserving cases ARR might grant permission to amend question or there parts Non resident’s tax liability or calculation of total Income should go according to DTAA, International aspects, contract act and other laws having bearing on the transaction. Powers of Authority Discovery and Inspection Enforcing attendance of any person Compelling the production books of account Issuing Commissions Has a power of a civil Court under the Code of procedure, 1908 AAR is applicable to Applicant, Commissioner, income tax authority, subordinates, applicant and related parties in the said transaction. AAR shall not admit any application if it is pending in any other court or appellant tribunal. Exception – Section 245N clause b sub clause iii Further, it shall not admit if the transaction involves determination of the Market Value of any property or, If it is specially designed to avoid Income tax and provisions. #SourabhJain #SJ
Posted on: Wed, 29 Oct 2014 08:30:01 +0000
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