Service tax advance ruling can be sought by 6 different categories of of entities. It can also be sought on a variety of issues.
Note: Service Tax has been replaced by the Goods and Services Tax (GST) starting 1 July 2017.
What does advance ruling with regards to service tax refer to?
As per the provisions outlined under Section 96A of the Finance Act, 1994, an advance ruling refers to the process carried out by an Authority to determine a specific fact that is contained in the application furnished by the applicant, with regards to his or her requirement to make payments towards service tax for a taxable service that has been mooted to be provided by the service provider.
What is the general scope or reach of advance rulings?
The Authority for Advance Rulings for Excise and Customs are required to stretch the scope of advance rulings to the point where binding rules are provided in advance to potential investors in order to give them a clear picture in relation to their tax liability or duty with regards to critical matters. However, as these advance rulings cannot be appealed against as per the provisions laid out in the Finance Act, 1994, they seek to provide the applicant with assurance regarding his or her tax liability. This in turn frees the applicant from getting sucked into drawn out legal conflicts that could cost him or her a substantial amount of time, money and effort.
Who are the different entities that can submit an application for an advance ruling?
There are six different categories of individuals or entities that can apply for an advance ruling:
- Any non-resident who has collaborated with another non-resident or another Indian resident for the establishment of a joint venture within India
- Any resident of India who has collaborated with a non-resident for the establishment of a joint venture within India
- Any wholly owned Indian company that is a subsidiary that has proposed to carry out business operations within India, provided the parent company of the subsidiary is a company incorporated and based outside India
- Any joint venture established within India, as per the provisions laid out in Section 96A of the Finance Act, 1994
- Any resident of India that comes under the category of individuals specified by the Central Government, and who has applied for advance ruling as per the provisions laid out in the following sections of various Acts:
- Section 28H of the Customs Act
- Section 23C of the Central Excise Act
- Section 96C of the Service Tax provisions of the Finance Act, 1994
- Any resident of India, who as an applicant, expresses a desire to import or receive any goods or products from the nation of Singapore as per the regulations of CECA (Comprehensive Economic Co-operation Agreement)
On what matters can an advance ruling be sought?
In the case of matters regarding service tax, an advance ruling can be sought for in relation to the following:
- The classification or categorisation of any kind of service as a service that is deemed to be taxable as per the provisions laid out under Chapter V of the Finance Act, 1994
- The principles that are required to be taken into consideration for the purpose of ascertaining the value of the service that is deemed to be taxable under the Finance Act, 1994
- The determination or ascertainment of the onus on the applicant to make service tax payment with regards to a service that is deemed to be taxable under Chapter V of the Finance Act, 1994
- The valuation of services that are deemed to be taxable for the purpose of levying service tax
- The application of any notification that has been issued as per Section 96C(2) of the Finance Act, 1994
Where can the Authority For Advance Rulings be found?
The Authority For Advance Rulings be found and contacted at the following address:
‘’Office of the Authority for Advance Rulings (Central Excise, Customs & Service Tax)
4th Floor (Room No. 445 to 465, 467 & 469), Hotel Samrat, Kautilya Marg,
Chanakyapuri, New Delhi – 110 021
Phone 91-11- 26876402/26876406, Fax No. 91-11-26876410
Email : email@example.com’’
Those individuals looking for additional information such as the application filing procedure, fees, annexure formats etc, can do so by visiting the following website: www.cbec.gov.in/cae/aar.htm
In which cities can an applicant get in touch with the department for advance rulings?
Applicants can contact Service Tax Commissionerates that are exclusive to the cities of Ahmedabad, Chennai, Kolkata, Bangalore, Delhi and Mumbai. The complete list of contacts for different cities around India can be seen below:
- Phone Number: 079-6305087 079-26309079
- Email ID: firstname.lastname@example.org
- Website: http://sevakarahmedabad.nic.in email@example.com
- Phone Number: 011-23378711
- Email ID: firstname.lastname@example.org
- Website: http://delhiservicetax.gov.in
- Phone Number: 080-22245739
- Email ID: email@example.com http://servicetaxbangalore.gov.in
- Website: http://delhiservicetax.gov.in
- Phone Number: 044-24330840- 42
- Email ID: firstname.lastname@example.org
- Website: http://servicetaxchennai.gov.in
- Phone Number: 033-22428922
- Email ID: Servicetax_kolkata@yahoo.com
- Website: http://kolkata-servicetax.gov.in
- Mumbai - I
- Phone Number: 022-22060619
- Email ID: email@example.com
- Mumbai - II
- Phone Number: 022-24131285, 022-24147945, 022-24133335
- Email ID: firstname.lastname@example.org
- Phone Number: 0755-2765208
- Email ID: email@example.com
- Phone Number: 0674-2581135
- Email ID: firstname.lastname@example.org
- Phone Number: 0172-2704180
- Email ID: email@example.com
- Phone Number: 0484-2394100
- Email ID: firstname.lastname@example.org
- Phone Number: 0422-2221981
- Email ID: email@example.com
- Phone Number: 040-23232028
- Email ID: firstname.lastname@example.org
- Phone Number: 0141-2385463
- Email ID: email@example.com
- Phone Number: 0522-2612606
- Email ID: firstname.lastname@example.org
- Phone Number: 0821-2476912
- Email ID: email@example.com
- Phone Number: 0121-2769785
- Email ID: firstname.lastname@example.org
- Phone Number: 0712-2565375
- Email ID: email@example.com
- Phone Number: 020-26051815
- Email ID: firstname.lastname@example.org
- Phone Number: 0651-2330022
- Email ID: email@example.com
- Phone Number: 364-2504178
- Email ID: firstname.lastname@example.org
- Phone Number: 0265-2331002
- Email ID: email@example.com
- Phone Number: 0891-2568837
- Email ID: firstname.lastname@example.org
In addition to the information provided above, applicants can also contact the Commissionerates by visiting the CBEC website, which lists all the relevant addresses and phone numbers in the Help Center drop down menu, which is part of the Service Tax segment of the site.