The Indian branch of Slack Ltd, Country Y has carried out some transactions with ZH Co. Ltd., Bengaluru in the financial year 2024-25. The value of…
CA Final · Direct Tax Laws and International Taxation · MTP · September 2025
The Indian branch of Slack Ltd, Country Y has carried out some transactions with ZH Co. Ltd., Bengaluru in the financial year 2024-25. The value of the transaction is 600 crores. ZH Co. Ltd. applied for advance ruling in January, 2025 to know exactly the tax consequences of its transactions with the non-resident Slack Ltd., Country Y, both for itself and on non-resident. What would be the amount of fee to be accompanied with the applicable for advance ruling. Assume application for ruling is accepted by Board for Advance Rulings (BAR). On 30.04.2025 BAR pronounced its ruling and said ruling was communicated to ZH Co. Ltd. on the same date. ZH Co. Ltd. was, however, not satisfied with said ruling. State whether the advance ruling pronounced by BAR is binding on ZH Co. Ltd. Is there any remedy available to ZH Co. Ltd. if it is aggrieved with the said ruling? Examine.
Suggested Answer and Working Notes:
Since the value of transaction between M/s ZH Co. Ltd and Slack Ltd, in respect of which ruling is sought, exceeds 300crores, fees of 10lakhs to be accompanied with the application. Advance ruling pronounced by Board for Advance Rulings is not binding on ZH Co. Ltd. Section 245W provides that the applicant who is aggrieved by any ruling pronounced or order passed by the Board for Advance Rulings may appeal to the High Court against such ruling. He has to do so within 60 days from the date of the communication of that ruling or order, in the prescribed form and manner. Accordingly, if ZH Co. Ltd. is aggrieved with the advance ruling pronounced by BAR, it can file an appeal before the High Court on or before 29th June 2025. The High Court can grant extension of a further period of 30 days for filing the appeal, if it is satisfied, on an application made by ZH Co. Ltd. in this behalf, that it was prevented by sufficient cause from presenting the appeal within the 60 days period as specified above.
Topics: Advance Rulings
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