भारत सरकार GOVERNMENT OF INDIA
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With a view to avoiding dispute in respect of assessment of tax liability a Scheme of Advance Rulings has been incorporated in the Income-tax Act and the Customs Act. The Authority for Advance Rulings (AAR) pronounces rulings on the applications of the non-resident/residents and such rulings are binding both on the applicants and the Tax department. Thus, the applicant can avoid expensive and time consuming litigation on any question of law or fact which might arise from normal assessment proceedings. The scheme   of   Advance    Rulings   allows eligible persons to seek clarity on tax liability before venturing into a particular taxable activity. Pursuant to the Finance Act, 2017, the AAR constituted under Income Tax Act 1961 is acting as AAR for Customs legislations as well.

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