SYNERGY IN TAX INFRASTRUCTURE Single AAR to Deal with All Taxes
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