The Central Board of Direct Taxes has locked up 3 Boards for Advance Rulings (BAR) to provide transparency on tax implications of transactions and to assist in preventing income tax controversies.
An order from CBDT mentioned that the provisions to replace the authority for advance rulings (AAR), set up in 1993, with BAR w.e.f.1st September. Additional order from CBDT stated of the 3 boards set up two shall be in Delhi and one in Mumbai.
The idea to replace the AAR with BAR is the immediate disposal of cases. The appeal towards the order of BAR can be furnished in high courts.
The advance ruling is the way of securing choices on the tax consequences of transactions or urged transactions that provide transparency to the assessee and assist in reducing the disputes.
BAR has been made the announcement build in the central budget and is targeted towards raising the effectiveness of the advance rulings.
Every board shall be included the two members, not below the rank of a chief commissioner. The government poses the target to remove the interface amid these boards and the appellants to the extent technologically attainable.
Reducing the prosecution and solving out the previous issues is the first priority of the CBDT. previously the government has urged the fiscal limit for furnishing the appeals through the tax council in the higher courts and the resolution of the policy said as ‘Vivad se Vishwas‘ was incorporated. In the present year budget, the government has also urged the new policy for the settlement of the small tax issues through the interim board replacing the erstwhile settlement commission.
