Service Recipient can also Apply for AAR – Judgement of AAAR Rajasthan

Landmark Judgement of AAAR Rajasthan
Now Service Recipient can also Apply for AAR.

This judgement will open AAR for 100’s of applicant whose application was rejected on technicality of being service recipient.

Analysis:

The recent landmark judgment by the Appellate Authority for Advance Ruling (AAAR) in Rajasthan has brought about a significant change. Now, not only service providers but also service recipients can apply for Advance Ruling.

Let’s understand it with an example:

Imagine you’re a business owner who wants to know the tax implications of a service you’re planning to avail. Previously, only the service provider could seek clarity on tax matters through Advance Ruling. However, if your application was rejected because you were a service recipient, you couldn’t get the clarification you needed.

But with this new judgment, if you’re in a similar situation, you can now directly apply to the Authority for Advance Ruling. This means hundreds of applicants who were previously unable to seek clarity due to being service recipients can now do so.

So, whether you’re providing a service or receiving it, you now have the opportunity to get clear guidance on tax matters through the Advance Ruling mechanism. This judgment ensures fairness and accessibility in the application of tax laws for both service providers and recipients.

Download the Judgement copy of AAAR Appeal No. RAJ/AAAR/APP/03/2022-23 against Advance Ruling No. RAJ/AAR/2022-23/09 dated 17.06.2022 below:

Let us know if you have any questions or any notice queries at anshul@karwaandassociates.com .