Advance Rulings, faceless assessment/e-assessment

A start-up in Powai wants to launch a subscription service next month. It is not sure whether the tax authorities will treat the subscription as a supply of goods or services, or what rate applies. Launching and waiting for a notice is a gamble. Could it ask the department first, and get an answer that binds the department? That is what an advance ruling is. And when the notice does come, why should the start-up's founder not have to queue at a tax office at all? That is the idea behind faceless assessment.

In two minutes

An advance ruling is a binding answer from a statutory authority on a question about a transaction the applicant is undertaking or proposing; faceless or e-assessment is the move of the assessment process onto an electronic platform where notices, replies and orders pass without a physical meeting.

The rest of this chapter

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