Govt to take call on GAAR implementation soon: Revenue secy

Tags: News
Amid industry apprehensions, Revenue Secretary Shaktikanta Das today said the government would shortly take a view on whether controversial tax law GAAR should be implemented from the scheduled date of April, 2015.

"It should not be interpreted that General Anti-Avoidance Rules (GAAR) is going to be brought in from April 2015...It is also a fact that the new government has not looked at the whole matter. So the new government would examine the whole matter and take a decision," Das said on the sidelines of an event organised by Ficci here.

"This (review) will happen shortly. There is sufficient time. We are still eight months away from the deadline," he said.

The Government had earlier proposed imposing the General Anti-Avoidance Rules (GAAR) from April 1, 2015, for those claiming tax benefit of over Rs 3 crore. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens.

As per the existing proposal, investments made after March 2013

will be covered under GAAR with effect from assessment year 2016-17.

The issue came to light after Minister of State for Finance Nirmala Sitharaman in a written reply to the Lok Sabha yesterday, said that GAAR will be applicable from April 1, 2015.

Clarifying on the issue, Das said, "All that has been said is a factual position that as per the current law GAAR has been deferred by two years and the two-year period ends in March 2015."

Referring to concerns that a flat 20 per cent tax on debt mutual funds has been proposed with retrospective effective from April 2014, the Revenue Secretary said, "CBDT will issue necessary clarification in this matter...There is no retrospectivity at all."

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The current value of the rupee does not merit market intervention

    The rupee, losing 40 paise per month against the dollar since May, is expected to remain under pressure till the calendar runs out on December 31, bef

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture