The Central Council of Direct Taxes established three Commissions for advance decisions in September 2021. Furthermore, with notification no. 07 of 2022, the Scheme of electronic advance decisions was introduced with the aim of making the entire process of advance decisions with a minimum interface and imparting greater efficiency, transparency and accountability.
Subsequently, Boards for Advance Rulings were made operational in Delhi and Mumbai. These commissions began functioning through email-based procedures and by conducting hearings via videoconference.
A non-resident investor can obtain assurance of his income tax liability even before investing in India. Furthermore, even a resident entity can obtain a decision on the taxability of a transaction and avoid long-lasting disputes, as the Regime is also available to a resident taxpayer who requests an early decision on his tax liability arising from one or more transactions, valuing Rs.100 crore or more in total. Public Sector Enterprises may benefit from obtaining advance rulings on pending matters of fact or law before any tax authority or appellate tribunal.
Provide general guidance and assistance to taxpayers on the procedure for requesting advance rulings, a Council manual for advance decisions was released by the president, CBDT on the 18thth as of August 2023. The Handbook can be accessed at https://incometaxindia.gov.in/pages/internatiofinal taxation/early judgment.aspx.
On this occasion, the president of the CBDT emphasized the government’s priorities in the area of ​​dispute prevention and prompt resolution of disputes. The creation of mechanisms such as the Board for Advance Rulings is a step in this direction.
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PPG/KMN
