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Compliance Calendar for the month of July, 2023 Simplifying Export Procedures: Tax-Free Supplies for International Trade

The Central Board of Direct Taxes (CBDT) has issued a notification, namely the e-advance rulings (Amendment) Scheme, 2023, which modifies the existing e-advance rulings Scheme, 2022. The amendments primarily focus on the Board for Advance Rulings and have been notified through Notification No. 38/2023 Income-Tax, dated 12th June, 2023. This article provides a breakdown of the key changes introduced by the amendment.

Amendment Details: Notification: No. 38/2023 Income-Tax Date: 12th June, 2023 Ministry: Ministry of Finance (Department of Revenue) Authority: Central Board of Direct Taxes (CBDT)

  1. Short Title and Commencement: (1) The amendment is referred to as the e-advance rulings (Amendment) Scheme, 2023. (2) It becomes effective from the date of its publication in the Official Gazette.
  2. Changes in the e-advance rulings Scheme, 2022: Within the e-advance rulings Scheme, 2022, the following amendments are made in paragraph 6, sub-paragraph (C):

Replacement of Clause (iv): The existing Clause (iv) is substituted with the following clauses:

  • The Board for Advance Rulings shall assess the response received as mentioned in Clause (iii).
  • After considering the response and providing an opportunity for a hearing (conducted via video conferencing or video telephony) as per sub-section (5) of section 245R of the Income-tax Act, 1961, the Board for Advance Rulings shall, upon the applicant’s request, pronounce the advance ruling on the specific question mentioned in the application.
  • A copy of the advance ruling will be sent to both the applicant and the concerned authority to whom the reference has been made.

Introduction of Clause (v): A new Clause (v) is introduced, which states the following:

  • In cases where the Members of a Board for Advance Rulings have differing opinions on any point or points, the matter shall be referred to the Principal Chief Commissioner of Income-tax (International Taxation).
  • The Principal Chief Commissioner shall nominate one Member from any other Board for Advance Rulings to resolve the differing point(s).
  • The decision on the point(s) shall be based on the majority opinion of the Members involved.

The CBDT has brought about changes to the e-advance rulings Scheme, 2022 through the e-advance rulings (Amendment) Scheme, 2023. These amendments primarily focus on the functioning of the Board for Advance Rulings. The objective is to streamline the process of pronouncing advance rulings and resolving differing opinions among the Board’s Members.

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