Section - 245N, 245O and 245Q - Amendments to the structure of Authority for Advance Rulings-


The amendment relates to the advance rulings under the Act. At present there are two different authorities for advance rulings – one for Income Tax and another for Central Excise, Custom Duty and Service Tax. It is proposed to merge the two authorities and accordingly consequential amendments have been made in the two Acts to facilitate such merger. The definition of ‘applicant’ in section 245N has accordingly been amended to provide reference of applications made under the Custom Act, Central Excise Act and Finance Act 1994. Similar amendment has been made in section 245Q relating to application for advance ruling.


Amendment has also been proposed in respect of qualifications of members of the authority. An officer of revenue service qualified to become member of CBDT and CBEC is qualified to become member of the authority.


Qualification for appointment as chairmen has also been amended to provide that a former Chief Justice of a High Court or a person who has been a High Court Judge for at least 7 years will be eligible to become chairmen.


It is also proposed that in the event of the chairmen being unable to discharge his functions or in the event the office of chairmen falls vacant, the vice-chairmen shall discharge the function of chairmen until the new chairmen is appointed or until the incumbent chairmen resumes duties. 


The amendment will be effective from 1st April 2017.