GAAR to be levied from March 2015
A government official stated that the government is still in dilemma on whether the much controversial general anti-avoidance tax law or GAAR should be started as scheduled and whether they have enough time to review it. Shaktikanta Das, the revenue secretary said during a post budget interaction along with an industrial body CII that, in this Budget the GAAR issue has not been taken into consideration. The government did not make any announcement regarding GAAR post this year’s budget revelation. The decision of GAAR has to be made before March 31st, 2015, which is eight months away.
The revenue secretary further added that there is a lot of time in hand to review the GAAR, and that the new government has not yet taken a view on GAAR. The government earlier had proposed to levy the General Anti Avoidance Rules or GAAR from the 1st of April, 2015 for the ones claiming tax benefit for over Rs 3 crore.
The rules of GAAR are aimed at decrementing the tax avoidance for investments made by groups based in tax havens. As proposed under the existing rules, the investments made after March 2013 will be covered under GAAR and shall come in effect from 2016-2017 assessment year.
Source: Financial Chronicle
Arun Jaitley, Budget 2014, business and finance, CBDT, double taxation, DTC, Economy, FICCI meeting, GAAR, General Anti-Avoidance Rules, GST, Insurability, Narendra Modi, net worth, Nirmala Sitharaman, open, Revenue Secretary Shaktikanta Das, Shaktikanta Das, tax avoidance
