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CA Final · Direct Tax Laws & International Taxation · Advance Rulings

Nirmal Exports Ltd, a resident company that files its return under digital signature, applies for an advance ruling on a proposed Rs. 80 crore transaction. The application falls under the category of a resident applicant under section 380(a)(ii). Consider these statements. (I) The fee is Rs. 2,00,000. (II) The application is signed by the person authorised to verify its return under section 265 and is furnished under digital signature. (III) Proof of fee payment must accompany the application. Which of the statements are correct under Rule 200?

All three statements are correct. The fee is Rs. 2,00,000 for a transaction below Rs. 100 crore. A company filing its return under digital signature signs the application through the person authorised to verify the return, using digital signature. Proof of payment of fees must also accompany the application.

  1. AI and II only
  2. BII and III only
  3. CI and III only
  4. DI, II and IIICorrect

Explanation

Row 1 of the fee table prescribes Rs. 2,00,000 for an amount below Rs. 100 crore, so I is correct. Rule 200(3)(a) requires the person authorised to verify the return under section 265 to sign, under digital signature where the return requires it, so II is correct. Rule 200(4) requires proof of fee payment, so III is correct.

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