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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
[CENTRAL BOARD OF DIRECT TAXES]
NOTIFICATION NO. 73/2014
New Delhi, the 28th day of November, 2014
S. O. (E). - In exercise of the powers conferred by sub-clause (iia) of clause (b) of section 245N of the Income-tax Act; 1961 (43 of 1961), the Central Government hereby specifies a resident, in relation to his tax liability arising out of one or more transactions valuing rupees one hundred crore or more in total which has been undertaken or proposed to be undertaken, being such class of persons, as applicant for the purposes of Chapter XIX-B of the said Act.
2. This notification shall come into force on the date of its publication in the Official Gazette.
[F. No. 142/6/2014-TPL]
(Gaurav Kanaujia)
Director to the Government of India
ADVANCE RULING
What is Advance Ruling and who can apply?
The scheme of advance rulings was introduced by the Finance Act, 1993. Chapter XIX-B of the Income-tax Act, which deals with advance rulings, came into force with effect from 1-6-1993. Under the scheme the power of giving advance rulings has been entrusted to an independent adjudicatory body. Accordingly, a high level body headed by a retired judge of the Supreme Court has been set-up. This is empowered to issue rulings, which are binding both on the Income-tax Department and the applicant. The procedure prescribed is simple, inexpensive, expeditious and authoritative.
Advance Ruling means written opinion or authoritative decision by an Authority empowered to render it with regard to the tax consequences of a transaction or proposed transaction or an assessment in regard thereto. It has been defined in section 245N(a) of the Income-tax Act, 1961 as amended from time-to-time.
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Advance Rulings As per section 245N(a), Advance Ruling means Determination of Ruling/Decisions in relation to the following:- |
Who can Apply for Advance Ruling As per section 245N(b), the advance ruling can be obtained by the following persons:- |
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(i) Transactions undertaken or proposed to be undertaken by a non-resident applicant. |
By the Non-resident |
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(ii) Tax liability of a non-resident for transactions undertaken or proposed to be undertaken by a resident with such non-resident. |
By the resident |
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(iia) Tax liability of a resident for transactions undertaken or proposed to be undertaken. |
By the Resident falling within such class or category of persons as notified [Notification 73/2014] |
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(iii) Issue relating to computation of total income pending before any income tax authority or Appellate Tribunal including determination of any question or fact of law. |
By the Resident falling within such calss or category of persons as notified |
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(iv) Whether an arrangement which is proposed to be undertaken by a resident or non-resident is an impermissible avoidance arrangement or not. |
By the resident or non-resident person |
Income Tax Advance Ruling Notification-Determination of Tax Liability of a Resident Applicant under Clause 245N(b)(iia) for Transactions Valuing 100 Crores or More
