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

Zenith Holdings Inc, a non-resident, proposes a transaction in India worth Rs. 80 crore and seeks an advance ruling on its tax liability under sub-clause (i) of section 380(a). Its sister concern Zenith Services Ltd, a resident, separately seeks a ruling on an Rs. 450 crore transaction under section 380(a)(iii). What are the respective fees under Rule 200?

The non-resident pays Rs. 2,00,000 because its transaction is below Rs. 100 crore under the first category. The resident pays Rs. 10,00,000 because its Rs. 450 crore transaction exceeds Rs. 300 crore under the second category.

  1. ARs. 2,00,000 and Rs. 5,00,000
  2. BRs. 2,00,000 and Rs. 10,00,000Correct
  3. CRs. 5,00,000 and Rs. 10,00,000
  4. DRs. 10,000 and Rs. 10,00,000

Explanation

The non-resident under item 1 with an amount below Rs. 100 crore pays Rs. 2,00,000. The resident under item 2 with an amount above Rs. 300 crore pays Rs. 10 lakh. Rs. 5,00,000 for the resident would apply only to Rs. 100 to 300 crore.

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