Advance Rulings Flashcards
What are the situations where Advance rulings under Section 245N(a) will be applicable?
What is the meaning of the word applicant(To be read with the situations covered under advance ruling cases)?
- is a non-resident referred to in section 245N(a)(i) above; or
- is a resident referred to in section 245N(a)(ii) above; or
- is a resident referred to in section 245N(a)(iia) above falling within any such class or category of persons as the Central Government may, by notification in the Official Gazette, specify(A resident in relation to his tax liability arising out of one or more transactions valuing ` 100 crore or more in total which has been undertaken or is proposed to be undertaken would be an applicant)
- is a resident falling within such class or category of persons as the Central Government may, by notification in the Official Gazette, specify in this behalf
- is referred to in section 245N(a)(iv) above; and
- who makes an application for advance ruling under section 245Q(1).
What are some restrictions on applying for different appellate authorities as per section 245RR?
- Section 245RR provides that where a resident applicant has made an application to AAR in respect of an issue for decision of AAR, then, any Income-tax Authority or Tribunal shall not take any decision in respect of such issues. In other words, a resident assessee cannot pursue both the remedies, i.e. an appeal or revision before Income-tax Authority/Appellate Authority as well as an application for Advance Ruling to AAR, in respect of an issue.
What is the composition of AAR as per the provisions of section 245-O?
The important thing to note here is that these compositions shall apply only for appointments made on or before 26.05.2017 and for those appointments made after this date - the provisions of section 184 shall only apply.
What should be the location of the AAR and it’s benches as per 245-O?
The Authority shall be located in the National Capital Territory of Delhi and its benches shall be located at places as notified by the Central Government.
What should the composition of the benches inside the composition of AAR as per the provisions of section 245R?
- A Bench shall consist of the Chairman or the Vice-Chairman and one revenue and one law Member.
- However, where the Authority is dealing with an application seeking advance ruling in any matter relating to the Income-tax Act, the revenue member of the Bench shall be such Member from the Indian Revenue Service, who is, or is qualified to be, a member of the Board.
Who shall act as the chairman when there is Any vacancy in the office of the Chairman by reason of his death, resignation or otherwise?
- The senior-most Vice Chairman shall act as the Chairman until the date on which a new Chairman, appointed in accordance with the provisions of the Act to fill such vacancy, enters upon his office
Who shall act as chairman when the Chairman is unable to discharge his functions owing to absence, illness or other cause?
The senior-most Vice Chairman shall discharge the functions of the Chairman until the date on which the Chairman resumes his duties.
What is the term of Chairman, Vice-Chairman or Member of the Authority as per the provisions of section 184 of the finance act, 2017?
The Chairman, Vice-Chairman or Member of the Authority shall hold office for such term as specified in the rules made by the Central Government but not exceeding 5 years from the date on which he enters upon his office and shall be eligible for reappointment.
What is the age criteria of Chairman, Vice-Chairman or Member of the Authority as per section 184 of finance act, 2017?
- For chairman - after he has attained the age of 70 years.
- Vice-Chairman or any other Member - After he has attained the age of 67 years.
what are the qualifications, appointment, term of office, salaries and allowances, resignation, removal and the other terms and conditions of service of the Chairman, Vice-Chairman and other Members of the Authority - as per Tribunal, Appellate Tribunal and other Authorities (Qualifications, Experience and other Conditions of Service of Members) Rules, 2020?
what is the manner of making application for advance ruling and what is the fees that has to be paid as per section 245Q?
General fees - 10,000 along with the proof of payment and the prescribed form
What is the time limit within which the application made to AAR could be withdrawn as per Section 245Q?
Section 245Q(3) provides that an applicant may withdraw an application within 30 days from the date of the application.
What is the procedure to be followed on receipt of application by the AAR as per section 245R?
The Authority on receipt of an application will send a copy to the Principal Commissioner or Commissioner concerned and wherever considered necessary, also call upon the Principal Commissioner or Commissioner to furnish relevant records. Such records will be returned to the Principal Commissioner or Commissioner as soon as possible.
The Authority may either allow or reject an application. However, the Authority shall not allow an application where the question raised in the application is - See image
What is the time limit within which the AAR has to pronounce it’s ruling as per the provisions of section 245Q?
An applicant on request can appear either in person or can be represented through a duly authorised
representative. The authority will pronounce the advance ruling within 6 months from the receipt of
* *application by the authority** and the copy of advance ruling pronounced, duly signed by the Members and certified, shall be sent to the applicant and to the PCIT/CIT.
What are certain miscellaneous procedure to be followed given through way of flowchart for ease of revision?
