Advance Ruling is the decision in advance by Authority empowered to pass it. Advance ruling is Written Decision by the authority regards to the tax consequences of a future financial transaction. Purpose of Advance ruling is render a clarification on the issue on which two views are possible, so that assessee proposing to execute the transaction (for which advance ruling is sought), have a clear mind about tax liability in advance for a given set of transaction’s.

Who can sought Advance Ruling?

• Non-Resident

• Resident Undertaking transaction with non-resident and the advance ruling sought for question of law or fact in regarding the tax liability of the non-resident Assessee.

• Resident Assessee undertake or propose to undertake a financial transaction involving amount of Rs. 100 crore or more.

• Notified Public Sector Company.

Procedure for obtaining Advance Ruling

Applicant who wish to undertake transaction or already took the transaction shall apply to the authority in a prescribed form for this purpose mentioning the question or questions for which advance ruling is sought. Application should be submitted in 4 copies.

Fees Payable for Advance Ruling is as Follows: