Final norms on GAAR to be out soon

The government is likely to announce soon the final guidelines on implementation of the controversial General Anti Avoidance Rules (GAAR).

The finance ministry has firmed up its views on the GAAR and the draft has been sent to Prime Minister Manmohan Singh, according to an official.

“Expect government’s views on GAAR in next 7-10 days,” the official added.

In view of widespread concerns of foreign investors, the government had earlier postponed implementation of GAAR, which was introduced in the Budget for 2012-13, by one year to April 1, 2013.

The Parthasarthi  Shome panel’s draft report, among other things, had suggested that the implementation of anti-tax evasion provision be postponed by 3 years to April, 2016.