Skip to main content

FinMin seeks suggestions on GAAR guidelines

By
The finance ministry has begun consultations with business on the General Anti-Avoidance Rule (GAAR), to be implemented from the next financial year.
To take the industry’s concerns on board, the ministry will come out with guidelines on these rules.  The ministry on Friday invited comments from stakeholders on the guidelines by June 30.
“Several stakeholders and industry associations have represented that guidelines for implementation of GAAR be issued, so that there is adequate clarity in this regard. The general public and stakeholders are, therefore, requested to provide their inputs on the provisions in respect of which further clarity is required, from its implementation perspective,” the ministry stated.
It also asked the stakeholders to avoid reference to hypothetical situations. “If the input relates to interpretation of a specific real world structure or arrangement, the structure should be such (which) commonly occurs in the sector and involves clarification of general principles of application.”
The ministry has asked the stakeholders to provide the particular provision and apprehensions or doubt in relation to such structure.
GAAR norms were originally proposed in the almost-junked Direct Taxes Code. Then finance minister Pranab Mukherjee had proposed it in Budget 2012-13. However, business lack of preparedness and  proposed implementation of Base Erosion and Profit Shifting by Organisation for Economic Co-operation and Develo-pment member nations led to GAAR’s deferment till the next financial year. GAAR can override tax treaties as well.
In response to a query as to what would be his feedback if he were to give inputs, Amit Maheshwari, managing partner of Ashok Maheshwary & Associates, said GAAR should not override tax treaties. “Nowadays, tax treaties have a clause of limitation of benefits. Tax treaties should be re-negotiated, rather than be overridden by GAAR,” he said.
Sunil D Shah, partner, Deloitte Haskins & Sells, said: “It is expected that more clarity will be available once the guidelines are framed setting out what types of arrangements would be impacted by the GAAR provisions. This will enable businesses to better plan their transactions.”
Business Standard New Delhi, 28th May 2016

Comments

Post a Comment

Popular posts from this blog

Budget: Startup sector gets new Fund of Funds, FM to allocate Rs 10K cr

By
  The Indian startup sector received a boost with Finance Minister Nirmala Sitharaman announcing the establishment of a new fund of funds (FoF) in the Budget 2025. The minister unveiled a fresh FoF with an expanded scope, allocating Rs 10,000 crore. The initial fund of funds announced by the government with an investment of Rs 10,000 crore successfully catalysed commitments worth Rs 91,000 crore, the minister said.   “The renewal of the Rs 10,000 crore commitment to the Fund of Funds for alternative investment funds (AIFs) is a significant step forward for the Indian startup and investment ecosystem. The initial Rs 10,000 crore commitment catalysed Rs 91,000 crore in investments, and I fully expect this fresh infusion to attract an additional Rs 1 lakh to Rs 1.5 lakh crore in capital,” said Anirudh Damani, managing partner, Artha Venture Funds.   Damani further added that this initiative will provide much-needed growth capital to early-stage startups, further strengthenin...
Post a Comment
Read more

After RBI rate cut, check latest home loan interest rates of top banks for loans above Rs 75 lakh

By
  The Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points from 6.50% to 6.25% in its monetary policy review as announced on February 7, 2025. After the RBI repo rate cut, banks such as SBI, Canara Bank, PNB, and Union Bank among others have cut their repo linked lending rates. Most other banks are also expected to cut their lending rates in line with the RBI rate cut. After banks cut their lending rates, their home loan borrowers will have to pay less interest. Normally, when a lender cuts the lending rate, borrowers get two options: Either to go for a reduction in EMIs or reduce the tenure of the loan. The second option will help the borrowers clear their home loan outstanding faster. In case, the borrower goes for reduction in EMI then the lower lending rate of the lender would mean lower Equated Monthly Installment (EMI) for borrowers.   EMI is the amount you will pay on a specific date each month till the loan is repaid in full.A repo rate-linked home ...
Post a Comment
Read more

GST collections rise 9.9% to exceed Rs 1.96 trillion in March 2025

By
  Gross GST collection in March grew 9.9 per cent to over Rs 1.96 lakh crore, government data showed on Tuesday. GST revenue from domestic transactions rose 8.8 per cent to Rs 1.49 lakh crore, while revenue from imported goods was higher 13.56 per cent to Rs 46,919 crore. Total refunds during March rose 41 per cent to Rs 19,615 crore. After adjusting refunds, net GST revenue stood at over Rs 1.76 lakh crore in March 2025, a 7.3 per cent growth over the year-ago period.       - Business Standard 02 th March, 2025
Post a Comment
Read more