Advance Ruling for Some Indians too
Way back in DDT 143 24 06 2005 - Andolan for Swadeshi Advance Ruling, we suggested that Advance Ruling facility should be extended to Resident Indians also.
Facility of advance ruling for a foreigner only, by definition implies lack of clarity in our laws and an offer to clarify them in advance to a foreigner so that he is not burdened with a demand later. Denial of the same facility to an Indian investor clearly implies that though the laws are not clear, we don't believe our taxpaying citizens deserve any clarification and demands can be struck on them at sweet will. This is demeaning, discriminating, insulting and tragic. Even the British government would have been a little embarrassed to make such laws for the Indians.
TIOL brought this to the notice of the Parliamentary Standing Committee on Finance and the Hon'ble Committee accepted our suggestion and reported to Parliament – “in case it is decided to continue with the system of Advance Rulings, there should be a provision enabling any resident assessee to seek a ruling on matters of interpretation involving substantial question of law.” -Please see - 24.10.2008.
Now the Government has extended the facility to some Resident Indians also.
Customs: This facility is extended to Project Imports and PSUs . - Notification No. , Dated: August 20, 2009
Central Excise: This facility is extended to PSUs - Notification No. , Dated: August 20, 2009
Service Tax: This facility is extended to PSUs - Notification No. , Dated: August 20, 2009
But this extension of facility to only PSUs in the realm of excise and service tax is baffling. Why should only the PSUs be the chosen ones? Does it mean that the rest of Indians/Indian entities are children of lesser God? We will be shortly entering into the third decade post liberalization but the bureaucratic thinking is still mired in the sixties, the heydays of PSUs .