Customs Duty And Tax Planning In India: Advance Authority Ruling

Tax has fundamental implication on the viability and planning of most projects. A conclusive determination of tax liability is therefore highly desirable. With this in view, the Indian Government has created a quasi-judicial body called the 'Authority for Advance Ruling' (Authority). Under this statutory scheme, (created under the Indian Customs Act, 1962) any foreign investor can get a fix on his customs duty in respect of imports or exports. A Ruling by the Authority is binding on both the customs authorities, as well as the applicant. The Authority comprises of a three member panel, headed by a former Judge of the Supreme Court of India.