One of the positives of the budget proposals is the applicability of advance ruling provisions to the resident private limited companies. This move reduces the litigation piled at the department level since there shall be an opportunity for understanding the department’s way of interpretation of a particular provision at the earlier stages itself. Further, the tax payer is also clear about the tax implications of a particular transaction and geared up to decide about collecting the same from the service receiver or not. Hence, this move is a welcome one since it helps reduce the litigation and throw light on the complicated provisions of the Finance Act, 1994.
Since, the advance ruling is made applicable to the resident private limited with effective from 11.07.2014, it is the need of the hour to brush up with the provisions of the most untouched Chapter VA of the Finance Act, 1994.
Read more: A Peek Into Advance Ruling Provisions Under Service Tax