The objective of having a mechanism of Advance Ruling :

What is the objective of having a mechanism of Advance Ruling?

Ans. 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.