A non-resident may be assessed to tax in India in respect of his taxable income, either directly or through agents.
The following persons may be treated as an 'agent' of the non-resident:
a) Employee or trustee of the non-resident
b) A person who has any business connection with the non-resident
c) A person from or through whom the non-resident is in receipt of any income
d) A person who has acquired a capital asset in India from the non-resident
Advanced ruling Meaning:
It means the determination by the concerned authority, of a question of law or fact, in relation to the transaction - which has been undertaken by the non-resident, or which is proposed to be undertaken by the non-resident.
Method of application:
Ø The non-resident can make an application for advanced ruling in form no. 34C.
Ø The application has to be in English or Hindi and has to be filed in quadruplicate
Ø The form has to be accompanied by a fee of Rs.2,500
Ø The application may be withdrawn at any time within 30 days fro the date of application.
Applicability of Advanced ruling:
The advanced ruling shall be binding
Ø on the person who has sought it, and
Ø in respect of specific transaction in relation to which such ruling has been sought.
No right of appeal against the ruling has been provided, as the ruling is binding and final on the applicant who has sought it.
