SYN­ERGY IN TAX IN­FRA­STRUC­TURE Sin­gle AAR to Deal with All Taxes

The Economic Times - - Front Page - Deepshikha.Sikar­war @ times­group.com

New Delhi: The gov­ern­ment pro­posedanall-en­com­pass­ingAuthor­ity for Ad­vance Rul­ing (AAR) to deal with both direct and in­di­rect taxes, amovethatwill­bringabout­somesyn­ergy in tax in­fra­struc­ture ahead of the roll out of goods and ser­vices tax.

Fi­nance min­is­ter said the cus­toms law would be amended to merge the cur­rent AAR for in­come tax with those of cus­toms, cen­tral ex­cise and ser­vices tax.

The gov­ern­ment has cre­ated a pro­vi­sion for trans­fer­ring the ap­pli­ca­tions pend­ing be­fore the AAR of cus­toms, cen­tral ex­cise and ser­vice tax to the one deal­ing with in­come tax. Go­ing for­ward, the lat­est step may help bring greater con­ver­gence be­tween both direct and in­di­rect tax ad­min­is­tra­tion and in­fra­struc­ture.

In or­der to im­prove the ef­fi­ciency and ef­fi­cacy of the AAR, and to in­crease the avail­able pool for ap­point­men­tasChair­man,AAR,the­gov­ern­ment has also pro­posed to amend the el­i­gi­bil­ity cri­te­rion. A for­mer chief Jus­tice of a High Court, or a per­son who has been a HighCourtJudge­fo­rat least seven years shall also be el­i­gi­ble to be Chair­man of the AAR. The gov­ern­ment has also raised the fees for avail­ing the AAR fa­cil­ity to ₹ 10000 from ₹ 2500 now.

AARisaquasi-ju­di­cial­bodythatal­lows com­pa­nies to get a guid­ance on their po­ten­tial tax li­a­bil­i­ties re­lat­ing to any trans­ac­tion be­fore­hand.

Govt raises fees for avail­ing the AAR fa­cil­ity to 10000 from 2500 now

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