INTRODUCTION

	Advance rulings would assure non-resident investors of their Service tax liability on the taxable services proposed to be provided by them in India.
2.	The scheme of Advance Rulings allows a non-resident investor setting up a joint venture in India in collaboration with a non-resident or a resident, or a resident setting up a joint venture in India in collaboration with a non-resident, to seek in advance, a ruling from the Authority for Advance Rulings. A wholly owned subsidiary Indian company, of which the holding company is a foreign company, can also seek such rulings. The rulings can be sought in respect of -
	(a)	Classification of taxable services under Chapter V of the Finance Act, 1994 (Service Tax);
	(b)	Valuation of taxable services for charging Service Tax under the Finance Act, 1994;
	(c)	Applicability of notifications issued under Chapter V of Finance Act 1994.
	(d)	Admissibility of credit of Service Tax under Chapter V of the Finance Act, 1994.
3.	Relevant provisions relating to Advance Rulings in Service tax law are incorporated in Chapter VA of the Finance Act,1994 (as amended by Finance Act, 2003) and are reproduced below: