Advance Ruling

Advance Ruling

Any advance tax ruling is a written interpretation of tax laws. It is issued by tax authorities to corporations and individuals who request for clarification of certain tax matters. An advance ruling is often requested when the taxpayer is confused and uncertain about certain provisions. Advance tax ruling is applied for, before starting the proposed activity.

Our people expertise in this field will assist you in various phases of process through understanding the business environment, interpretation of respective laws, application and representation before authority.

CGST Act prescribes certain questions in relation to which Advance Ruling may be sought

  • Classification of Goods and Services or both
  • Applicability of a notification issued under GST Act
  • Determining time of supply of goods or service or both
  • Determining Value of supply of goods or service or both
  • Eligibility of ITC
  • Liability to be Register
  • Characterization as “Supply of Goods” or “service” or “Both”

Some of the issues on which rulings are frequently sought under Income Tax Act are:

  • Application of DTAAs entered into by India and their use in tax planning, conflicts between DTAAs and domestic tax legislation, e.g. determination of tax residence on the basis of facts of a particular case.
  • Determination of permanent establishment, particularly in relation to cases involving Business Process Outsourcing (BPO), Liaison offices.
  • Taxation problems in India of International partnerships.
  • Transfer of assets into and out of tax jurisdictions vis-à-vis Indian taxation.
  • Taxation of services, royalties, technical fees and income from supply of labour, equipments etc.
  • Taxation of Foreign Investment Institutions, investment funds, venture capitalfunds, offshore funds, financial instruments and derivatives, cross-border leasing.
  • Problems relating to withholding of tax.

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