Will expand consultation process, says GAAR panel chief
New Delhi: Chief of Prime Minister appointed panel on GAAR Parthasarathi Shome Monday said ambit of consultations on the anti-tax evasion measures will be widened.
He, however, added that long discussion is not required.
"Will expand the consultation process," he said, but added "long consultation process on GAAR (General Anti-Avoidance Rules) is not required".
Last week, Prime Minister Manmohan Singh had appointed a four member panel under Shome to prepare fresh norms on the controversial tax provision to bring "greater clarity" and prepare a roadmap by September 30 for its implementation.
Implementation of GAAR, proposed in the Budget 2012-13, were deferred by one year to April 2013 amid widespread concerns by investors, both foreign and domestic.
Shome who is ICRIER chief and taxation expert said as India is a major investment destination, GAAR is central to the country's investment environment.
"The fact remains that India today is a major destination for investment from abroad as well as from domestic investors...Our domestic investors are going abroad, so I think that the role of GAAR, there is no doubt, is central to India's overall investment climate," he said.
According to the terms of reference, the committee will receive comments from stakeholders and general public till end-July on the draft guidelines issued by the Finance Ministry. It will rework the guidelines based on the feedback and publish the second draft GAAR guidelines by 31 August.
The committee has been asked to finalise the GAAR guidelines and a roadmap for implementation and submit it to the government by 30 September.