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TMI BlogScheme of Advance Rulings for Non-Resident & Specified Resident Investors, under Indian Central Excise, Customs and Service Tax ProvisionsX X X X Extracts X X X X X X X X Extracts X X X X ..... inance Act, 1994 (i.e. in the event of change in law or facts) would leave the parties free of any time consuming and expensive litigation subsequently. No provision of appeal against an advance ruling exists in the three enactments. Forms and the manner of application have been prescribed under Customs (Advance Rulings) Rules 2002, Central Excise (Advance Rulings) Rules, 2002 and Service Tax (Advance Rulings) Rules 2003. Authority for Advance Rulings (Central Excise, Customs And Service Tax) Procedure Regulations, 2005 {"AARUL (CEST)" Procedure Regulations} details the procedure for obtaining advance rulings. ACTIVITY / SERVICE ON WHICH ADVANCE RULINGS CAN BE SOUGHT Activity means import or export of goods under the Customs Act, 1962 and production or manufacture of goods under the Central Excise Act, 1944. Services refers to a taxable service so specified in Chapter V of the Finance Act, 1994 under the Service Tax Provisions. BENEFITS OF OBTAINING ADVANCE RULING Obtaining an advance ruling helps the applicant in planning their Customs & Central Excise activities or providing of a service well in advance. It would also bring certainty in determining the indirect tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to them in clauses (42), (30), (26), (23A) and (36A) of section 2 of the Income- tax Act, 1961. NOTE 2: "Public Limited Company" shall have the same meaning as is assigned to "Public Company" in clause (iv) of sub-section (1) of Section 3 of the Companies Act, 1956 (1 of 1956) and shall include a private company that becomes a public company by virtue of section 43A of the said Companies Act, 1956. NOTE 3: Categories at (b) (c) & (d) above are eligible to file application under sub-section (1) of section 28H of the Customs Act, 1962 only} WHO IS A NON-RESIDENT? Under the existing provisions of the Income Tax Act, 1961 (Section 6) the taxable entities are broadly divided into three groups, viz., individual, Company and all other persons such as Hindu Undivided Family, Firm, Association of Persons, etc. These taxable entities are divided into three categories depending upon their resident status. These categories are: • Resident; • Resident but not ordinarily resident; and • Non-Resident The resident status of each group of the taxable entities is, in brief, as under: "Individual": An individual is a 'resident' in India in any previous year: 1. If he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gin of goods in terms of the rules notified under the Customs Tariff Act, 1975 and matters related thereto. Central Excise : • Classification of goods under the Central Excise Tariff Act, 1985; • Applicability of a notification issued under sub-section (1) of Section 5 A of the Central Excise Act, 1944 having a bearing on the rate of duty; • Principles to adopted for the purposes of determination of value of goods under the Central Excise Act, 1944; • Applicability of notifications issued under the Central Excise Act, 1944, Central Excise Tariff Act, 1985 and any duty chargeable under any other law for the time being in force in the same manner as duty of excise leviable under the Central Excise Act, 1944; • Admissibility of credit of excise duty paid or deemed to have been paid on the goods used in or in relation to the manufacture of excisable goods (Cenvat); • Determination of the liability to pay duties of excise on any goods under this Act. Service Tax: • Classification of any service as taxable service under Chapter V of the Finance Act, 1994; • Valuation of taxable services for charging service tax; • Principle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -mail address of his representative in India, if any, authorized to act on his behalf and to receive notices or other documents sent by the Authority. Authorized Representative An applicant is entitled to represent his case before the Authority either personally or through an authorized representative, a document authorizing him to appear for the applicant should be enclosed in original, before the commencement of hearing. If the authorized representative is a relative of the applicant, the document shall state the nature of his relationship with the applicant, or if he is a person regularly employed by the applicant, the capacity in which he is at the time employed. However, where the authorized representative is legal practitioner, such document of authorization shall be a duly executed vakalatnama. Payment of Fee An application should be accompanied by a fee of ₹ 2,500 (Two Thousand Five Hundred Indian Rupees) through a demand draft drawn in favour of the "Authority for Advance Rulings (Central Excise, Customs & Service Tax)" payable at New Delhi. Withdrawal of application An applicant may withdraw his application within 30 days from the date of filing the applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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