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SUB: Scheme of Advance Rulings under Customs Central Excise and Service Tax Law for foreign Investors - regarding.
It is brought to the notice of all concerned that a high level quasi-judicial body, namely, Authority for Advance Rulings, Customs and Central Excise, Hotel Samrat, 4th floor, Kautilya Marg, Chanakyapuri, New Delhi - 110021, headed by a retired judge of the Supreme Court and having another two members of Additional Secretary rank, has been constituted with a view to facilitating foreign investors who want to establish a venture in India. The aim of the Authority is to provide binding rulings in advance, in matters related to Customs, Central Excise and Service Tax.
2. The process of obtaining a ruling is simple, inexpensive, transparent and highly expeditious as the Authority is statutorily required to deliver the ruling within 3 months of receipt of an application. Rulings pronounced by the Authority are binding on departmental officers engaged in assessment of goods and services and on the applicant, and hence rule out possibilities of disputes and litigation subsequently. Furthermore, Advance Rulings are not appealable by the department or the by applicant, under the Customs, Central Excise or Service tax law.
3. These rulings would indicate, in advance, the indirect duty liability in respect of an 'activity', viz., import or export under the Customs Act, production or manufacture of goods, under the Central Excise Act and taxable services under the Service Tax law, proposed to be undertaken by an applicant.
4. The scheme of Advance Rulings allows a non-resident investor setting up a joint venture in India in collaboration with a non-resident or a resident, or a resident setting up a joint venture in India in collaboration with a non-resident, to seek in advance a ruling from the Authority for Advance Rulings. A wholly owned subsidiary Indian company, of which the holding company is a foreign company, can also seek such rulings. The rulings can be sought in respect of -
(a) Classification
of goods under the Customs Tariff Act, 1975; Central Excise Tariff Act, 1985;
and of taxable services under Chapter V of the Finance Act, 1994 (Service
Tax).
(b) Principles of valuation under the Customs Act, 1962, and the central Excise Act, 1944.
(c) Valuation of taxable services for charging Service Tax under the Finance Act, 1994.
(d) Applicability, of notifications issued under the Customs Act, 1962, Customs Tariff Act, 1975, Central Excise Act, 1944 and Central Excise Tariff Act, 1985 having a bearing on the rate of duty and of notifications issued under Chapter V of Finance Act 1994.
(e) Admissibility of input-tax credit under Central Excise law.
(f) Admissibility of credit of Service Tax under Chapter VA of the Finance Act, 1994.
5. Names and telephone numbers of officers of the Authority who can be contacted for any further information are given below:
Name of the officer Telephone Number Fax Number
Shri Atul Gupta 91-11-26876729 91-11-26876729
(Add. Comr)
Shri Vijay Kumar 91-11-26876412 91-11-86876410
(Jt. Comr.)
Website: w.w.w.cbec.gov.in/cae/aar.htm
6. All Trade Associations are requested to give wide publicity of the contents of this Trade Notice amongst their members
( RAJENDRA PRAKASH )
COMMISSIONER
Authority : DOC No. 16/6/2002-AAR dated 5.6.2003,issued by Commissioner, Authority for Advance Rulings, Customs and Central Excise.