Vide the Finance Act, 2017, section 245Q has been amended so as to enlarge/expand the scope of Authority for Advance Rulings to cover cases relating to central excise, custom duty and service tax and thus have single AAR for both Direct and indirect-tax dispute instead of 2 separate benches. Fees for filing application for advance ruling for Indirect-tax dispute amounts to Rs.2500/-. As against the same the filing fees for AAR for direct-tax dispute as per Rule 44E which has been increased from Rs.10,000 to Rs.2 lakhs to Rs.10 lakhs depending on value of transactions (w.e.f 28 November 2014).


In view of the aforesaid, it is suggested that fees for filing of AAR for direct-tax disputes may be brought in line with Indirect-tax dispute since, the matters are going to be decided by the same authority for direct-tax and indirect-tax disputes.

Further, since Goods and Services Tax law has been made applicable in India w.e.f. 1.7.2017 replacing the major indirect tax levies like Central Excise, Value Added Tax/Sales Tax and the Service Tax law etc., appropriate amendments may be carried out at relevant places in Income-tax law eg section 245Q and section 28 etc.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)

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