Govt to announce final guidelines on GAAR implementation soon

Govt to announce final guidelines on GAAR implementation soon New Delhi: The government is likely to announce soon the final guidelines on implementation of the controversial General Anti Avoidance Rules (GAAR).

The Finance Ministry has firmed up its views on the GAAR and the draft has been sent to Prime Minister Manmohan Singh, an official said.

"Expect government's views on GAAR in next 7-10 days," the official said.

In view of widespread concerns of foreign investors, the government had earlier postponed implementation of GAAR, which was introduced in the Budget for 2012-13, by one year to April 1, 2013.

The Prime Minister in July had set up a committee under tax expert Parthasarthi Shome to address concerns of foreign and domestic investors on GAAR. The committee has submitted its report to the Finance Ministry.

The Shome panel's draft report, among other things, had suggested that the implementation of the anti-tax evasion provision be postponed by 3 years to April, 2016.

On November 10, the Prime Minister had also said the decision on the GAAR and retrospective amendments to tax laws were likely to be announced in next few weeks.

The panel's draft report had also recommended that GAAR be applicable only if the monetary threshold of tax benefit is Rs 3 crore or more.

PTI