The Central Board of direct Taxes (CBDT) has opened up the facility which till now was only open to Non- Resident Indians.Now, even the Domestic Tax Payers can can apply for the Advance Ruling to understand the tax liability on their transactions.
By the virtue of this facility the taxpayers can can get a view upfront on the tax liability of the transactions they intend to undertake or have undertaken during a financial year.
The CBDT has spelt out the minimum threshold on the transaction value that would be eligible for an advance ruling and has prescribed the format of the application required along with the fee schedule. According to the norms a resident can use the Advance Ruling Facility in relation to tax liability arising out of one or more transactions valued at Rs. 100 crore or more in aggregate.
