IBX-Jakarta. India’s tax authority, the Central Board of Direct Tax, has issued a handbook setting out guidance on issuing advance tax rulings under the Indian Income Tax Act.
Alongside the release of the handbook, the tax authority announced that the Boards for Advance Rulings have been operationalized in Delhi and Mumbai.
In September 2021, the tax authority constituted three Boards for Advance Rulings. Subsequently, in 2022, it introduced E-advance Ruling Scheme to make the advance tax rulings process efficient and transparent.
A non-resident investor can obtain certainty on its liability towards income tax even before undertaking the investment in India. Resident companies may also obtain a tax ruling on the taxability of a transaction and avoid long-drawn litigation, the tax authority said.
“Creation of mechanisms like the Board for Advance Rulings is a step in this direction,” the tax authority said.
Source: https://transferpricingnews.com/india-sets-up-advance-tax-rulings-boards/
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