Objectives for setting up Advance Ruling Authority :

There is an Advance Ruling Authority at national level for Customs, Central Excise and Service tax laws. Several states also have Advance Ruling Authority. The broad objective for setting up such an authority is to:

i. provide certainty in tax liability in advance in relation to an activity proposed to be undertaken by the applicant;

ii. attract Foreign Direct Investment (FDI);

iii. reduce litigation;

iv. pronounce ruling expeditiously in transparent and inexpensive manner;

v. implement Standard 9.9 of Revised Kyoto Convention under WCO.