Introduction & Procedure of Advance Ruling
With a view to remove any confusion and to avoid disputes in respect of determination of the income tax liability of a non-resident person, a procedure of Advance Rulings has been brought on statute by way of incorporating Section 206A into the Income Tax Ordinance, 2001, w.e.f. 1.7.2003. Through this facility non-residents can obtain, in advance, a binding ruling on the issues that could arise in determining their tax liabilities at a later stage. Therefore, time consuming and expensive legal disputes can be avoided. The Centre Board of Revenue is empowered to determine any question of law or of fact as specified in the application made before it in respect of a transaction which has been undertaken or is proposed to be undertaken by a non-resident in Pakistan on its own or in combine with a resident concern. |
Composition of the Advance Ruling Committee |
The application for advance ruling is considered and decided upon by a committee headed by the Chairman, Central Board of Revenue, after giving due opportunity to the applicant of explaining his case. Other members of the committee are Member (Direct Taxes), Central Board of Revenue, and Additional Secretary, Law, Justice, and Human Rights Division, Government of Pakistan. |
Procedure |
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Signing of Application |
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Authorized Representative |
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Payment of Fee |
There is no fee for seeking an advance ruling from the Central Board of Revenue.
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Withdrawal of application |
The applicant may withdraw his application at any time before the ruling is issued.
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Advantages of Advance Ruling |
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Who can seek advance ruling? |