advance ruling

Can anyone tell me what is the purpose of Advance Ruling? Why Advance ruling came? (with good explanation in simple terms with examples)

thanking you..

 

Replies (3)

Main purpose for introduction of Advance Rulings was to help Non-Resident (and some specified residents).  You might be aware about the income tax procedure in our country.  Even a minor dispute in income tax matter can lead to litigation and we have to wait for years to get the verdict.  It was very difficult for a Non-Resident to appear again and again before courts/adjudicating authorities and to wait for years to get justice.  

 

Hence a scheme of advance ruling was introduced for NRI to avoid such time consuming and harassing litigations.  As per scheme a NRI can apply to authority of advance ruling to get verdicts provided certain conditions are fulfilled.  It is a mode of speedy trial and verdict.

For further details you can refer following link

https://aar.gov.in/about.html

 

 

thank  u very much...mohit

also can u tell me

"

QUESTIONS ON WHICH ADVANCE RULING CAN BE SOUGHT?

The advance ruling can be sought on any question of law or fact specified in the application in relation to a transaction which has been undertaken, or is proposed to be undertaken, by the non-resident applicant.

However, an advance ruling cannot be sought where the question.

  • is already pending in the case of the Non-resident applicant before any income-tax authority, the Appellate Tribunal or any court;
  • involves determination of fair market value of any property; or

relates to a transaction which is designed prima facie for avoidance of income-tax.  "

what is this ?  i mean which case is pending?  if u can examples will be good..

 

This means the matter on which you want to apply for advance ruling should not already be pending in any other court

For exp:  Lets suppose you are a Non Resident.  Your income in India has been assessed by ITO say Rs. 50 lakh.  You have an objection on this assessment.  Now if you file appeal against the ITO to Commissioner (Appeal) or to High Court, and the case is still pending before them, then you can't apply for same case to authority for advance ruling.

In simple words a single case can't be carried on before two different authorities.

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