1. Home
  2.  |  
  3. Economy Current Affairs  |  

Union Cabinet approved creation of two additional benches of the Authority for Advance Rulings

Feb 26, 2015 11:03 IST

Union Cabinet on 25 February 2015 approved the creation of two additional benches of the Authority for Advance Rulings (AAR). Two additional benches of the AAR will be established in New Delhi and Mumbai.

For these two benches, there will be a creation of two posts of Vice-Chairmen in the Apex scale and four posts of Members (two posts of Revenue Members and two posts of Law Members) in the Higher Administrative Grade (HAG+).

Moreover, two posts of Secretary at the level of Commissioner of Income Tax or Joint Secretary will also be created.

The cabinet also approved one time expenditure of 7.48 crore rupees for establishment of the two additional benches and additional annual recurring expenditure of 6.61 crore rupees for running these two additional benches.

This decision will enable resident taxpayers to obtain an advance ruling in respect of their income tax liability above a defined threshold.

Significance of two additional benches of the AAR

• The creation of two additional benches of the Authority will dispose of increased number of cases and pendency of cases will be reduced benefitting the tax payer and the Government.
• This will operationalise the facility of advance ruling for resident tax payers. The benches will facilitate the cause of the resident tax payers in obtaining tax clarity in certain situations.

About Authority for Advance Rulings (AAR)
In order to provide the facility of ascertaining the Income-tax liability of a non-resident, a scheme of Advance Rulings was introduced in the Chapter XIX-B of the Income-Tax Act, 1961 and the Authority for Advance Rulings (AAR) was constituted in 1996.

A non-resident or certain categories of resident can obtain binding rulings from the Authority on question of law or fact arising out of any transaction/proposed transactions which are relevant for the determination of his tax liability.

The AAR consists of a Chairman, who is a retired Judge of the Supreme court and two members of the rank of Additional Secretary to the Government of India, one each from the Indian Revenue Service and the Indian Legal Service.

Is this article important for exams ? Yes4 People Agreed

Latest Videos

Register to get FREE updates

    All Fields Mandatory
  • (Ex:9123456789)
  • Please Select Your Interest
  • Please specify

  • ajax-loader
  • A verifcation code has been sent to
    your mobile number

    Please enter the verification code below

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK