Gaar

Ammendments proposed in provisions relating to General Anti-Avoidance Rules (GAAR)

Following government amendments have been proposed in the provisions relating to GAAR contained in Finance Bill 2012:-

1. To remove the onus of proof from the taxpayer to the Revenue department before any action can be initiated under GAAR;

2. To introduce an independent member,not below the rank of the Joint Secretary from the Ministry of Law, in GAAR approving panel to ensure objectivity and transperancy;

3. To provide that both resident as well as non-resident taxpayers can approach the Authority for Advance Rulings (AAR) for any ruling as to whether any arrangement to be undertaken is permissible or not under the GAAR provisions;

4. To provide more time to both taxpayers as well as the tax administration to address all related issues, it is proposed to defer the applicability of GAAR by one year i.e with effect from financial year 2013-14.

Few details abt GAAR.-General Anti-Avoidance Rules