October 2, 2012 2:29:28 am
The government will finalise the guidelines on implementation of General Anti Avoidance Rules (GAAR),the controversial tax provisions aiming to target tax evaders,by the end of this month,finance minister P Chidambaram said today.
The guidelines would be based on the recommendations of the Parthasarthi Shome committee,which submitted the final report to the government earlier during the day.
The Shome committee submitted two reports,the final report on GAAR based on the feedback on the draft GAAR report. We will examine it,the draft rules will be amended and depending on what amendments are made,it may be necessary to make amendments in the Income Tax Act. It is a three-stage process, the finance minister said.
According to official sources,the committee,in its final report,has suggested that roll-out of GAAR should be deferred till 2016-17 to provide a fillip to the investment sentiments in the country.
He clarified that in the first stage,the finance ministry will finalise its views on the final report by the committee and in the second stage,the income tax department would come out with GAAR rules.
I expect stage 1-finalisation of our views on the final report (by Shome Committee) to take place in next 10 days. Stage 2-the final GAAR rules would take another 10 days because that would require vetting by the ministry of law. So at the moment,I would like to complete Stage 1 and Stage 2 … that would be (done) by the end of this month, the minister said.
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