Tax Hotline

July 21, 2009

The Rising Popularity of Advance Rulings in India

India has earned the dubious distinction of being the country adding the most teeth to its tax regime in the previous year, according to a recent Forbes study. This has been compounded by the aggressive approach adopted by the revenue authorities in the recent past, leading to uncertainty for foreign investors when it comes to tax implications on their transactions in India. The Authority for Advance Rulings (AAR) has emerged as a significant player contributing to international tax jurisprudence, not just in India, but also internationally.

Over the last few years, AAR rulings have come a long way in removing uncertainty and imbalance in the tax administration. The AAR has helped instill confidence in foreign investors who, after obtaining a ruling, get a true picture of their tax liability in India, and can then plan their business affairs before entering India. With more than 70,000 cases pending before the Income Tax Appellate Tribunal, the AAR has emerged as a fast and efficient alternative as it avoids a long drawn expensive litigation process.

We had recently written a detailed article analyzing the rise in popularity of the Advance Ruling mechanism in India together with relevant statistics evidencing this trend, in Tax Notes International (July 20, 2009). The same can be accessed from the link provided below.

The Rising Popularity of Advance Rulings in India- TNI Article


-  Harshal Shah & Bijal Ajinkya




The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.




Proud Moments

Benchmark Litigation Asia-Pacific: Tier 1 for Government & Regulatory and Tax
2020, 2019, 2018

Legal500 Asia-Pacific: Tier 1 for Tax, Investment Funds, Labour & Employment and TMT
2020, 2019, 2018, 2017, 2016, 2015, 2014, 2013, 2012

Chambers and Partners Asia Pacific: Band 1 for Employment, Lifesciences, Tax and TMT
2020, 2019, 2018, 2017, 2016, 2015

IFLR1000: Tier 1 for Private Equity and Project Development: Telecommunications Networks.
2020, 2019, 2018, 2017, 2014

AsiaLaw Asia-Pacific Guide 2020: Tier 1 (Outstanding) for TMT, Labour & Employment, Private Equity, Regulatory and Tax

FT Innovative Lawyers Asia Pacific 2019 Awards: NDA ranked 2nd in the Most Innovative Law Firm category (Asia-Pacific Headquartered)

RSG-Financial Times: India’s Most Innovative Law Firm
2019, 2017, 2016, 2015, 2014

NDA Connect

Connect with us at events, 
conferences and seminars.