A day after the revision of bilateral tax treaty with Mauritius, Finance Ministry on Wednesday said GAAR provisions, which are to take effect from April next year, will override the DTAA provisions in case they are abused.
The rules for determining place of effective management of a company have been deferred till April 2017 so as to give corporates sufficient time to prepare accounts according to their place of residency under the new norms, Finance Ministry said today.
Analysts expect the inflows to accelerate further in view of clearance of reform bills for insurance, coal and mining, as also on assurances on controversial issues like General Anti Avoidance Rules (GAAR).
With overseas investors pumping in over Rs 2,000 crore in the Indian capital markets so far this month, total foreign fund inflows have crossed the Rs 81,000 crore mark since the beginning of the year.
Japanese investors remain "very positive" on India, saying there is a big opportunity for placing "significant" FDI if the country can sort out some of its tax issues, a top official of Japan's financial services major Nomura has said.
Parthasarathi Shome, the Chairman of Tax Administration Reforms Commission, constituted by the Finance Ministry, Monday hailed the decision to defer General Anti-Avoidance Rules (GAAR) as announced in the Budget.
To soothe investors' nerves, Finance Minister Arun Jaitley Saturday deferred the controversial General Anti-Avoidance Act (GAAR) by two years, saying its immediate applicability can create 'panic' in markets.
The government Wednesday ruled out any tax amnesty scheme to unearth black money saying it goes against honest taxpayers even as it sought to send out a positive signal to investors by promising a re-look at the controversial GAAR shortly.
Government will shortly take a call on the controversial tax proposal, General Anti-Avoidance Agreement, which was deferred till April 2015 by the UPA regime, Finance Ministry Arun Jaitley on Friday said.