PM panel on GAAR has begun consultation

Prime Minister-appointed panel on GAAR has begun consultations with the stakeholders to fine tune and bring greater clarity in the draft norms, the chairman of the committee Parthasarathi Shome said on Thursday.

"We have already begun the consultation process quite intensively and it will be more intensified as we go ahead," Shome said at an Assocham seminar in New Delhi.

Introduction of GAAR, which was proposed by then Finance Minister Pranab Mukherjee in the Budget 2012-13 to check tax evasion, had triggered strong opposition by foreign investors following which its implementation was postponed till April next year.

Earlier this month, Prime Minister Manmohan Singh had set up a committee to prepare fresh norms on the controversial tax provision -- General Anti-Avoidance Rules -- to bring in greater clarity and prepare a roadmap by September 30

for its implementation.

"We have already started meeting the advisors and there are lots of requests for presentation. The whole point of meeting the stakeholders is to see what are the legitimate and not so legitimate views.

"Besides, there are some issues that can come up and we have to sift through them," Shome said.

Last month, the Finance Ministry had come out with draft guidelines on GAAR and had invited stakeholders comments on the same.

Later, the Prime Minister set up an expert committee under Shome to hold fresh consultations on the controversial tax issue and submit its report by September end.

"We are likely to meet the September 30 deadline to come out with our report," Shome said.