Tuesday, August 14, 2012

GAAR to be reworked as PM wants new plan

Prime Minister Manmohan Singh has indicated the General Anti-Avoidance Rules (GAAR) would
be written afresh, as the government strove to undo the damage to investor sentiment seen after
the rules were proposed in the Budget. A new panel headed by taxation expert Parthasarathi Shome, the head of Indian Council for Research on International Economic Relations (ICRIER) and a former adviser to the finance minister during P Chidambaram's tenure between 2004 and 2008, will draft fresh GAAR guidelines and prepare a road map for its implementation to be submitted to the government by Sep. 30. Meanwhile, Foreign institutional investors (FIIs) have sought an unqualified exemption from the application of General Anti-Avoidance Rules (GAAR).


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