Invest in India, but we don't answer questions
THE Authority for Advance Ruling Chairman, Justice VS Sirpurkar said that over 500 applications are pending before the AAR. He said, "The interesting aspect is that about 90 per cent of these applications are from foreign companies that are keen to invest in India and had approached AAR to get some certainty on the tax treatment of their proposed transactions."
He said:
At least in 30 applications before me this question is asked. What have you (tax department) been doing? If there are 30-40 applications by foreign companies who are prepared to pour in money, you don't even answer that if they are required to maintain their accounts as per Indian Companies Law.
Tax officials should come prepared before the Authority for Advance Rulings (AAR) and not seek frequent adjournments, which leads to delay in adjudication of the cases.
Central Board of Direct Taxes Chairperson Ms. Anita Kapur said that she would instruct her officers to refrain from seeking frequent adjournments.
She also said that senior officials of the tax department have been asked to appear before AAR so that the legal issues could be well explained and matters disposed of quickly.
And while on that, the CBEC is yet to have a full time Chairman. Mr. Najib Shah is only an acting Chairman.