These forms are proposed to be modified so that details such as name, address and the country, where subsidiaries’ immediate parent company or ultimate parent company is located, can be incorporated at the application stage itself. Peer reviews done in India by the Organisation for Economic Cooperation and Development (OECD) require the country to strengthen its system so that advance rulings do not trigger a situation of zero or low tax, which in turn, affects other countries.
S P Singh, partner, Deloitte India, said while the changes seemed quite reasonable, but these were focused mainly on the procedures. The country should also strengthen its system at AAR, he said. Currently, the AAR has only two benches — one in Delhi and another in Mumbai. There is only one acting chairman and not all vacancies of members have been filled.