Media ›

Finance Minister Confirms Indian GAAR Delay to 2016

22 Jan 2013

First published in the International Tax Review, 16 January 2013

The Indian Finance Minister has confirmed that the major recommendations of the expert general anti-avoidance rule (GAAR) committee will be accepted and that GAAR implementation will be deferred by 2 years to April 2016.

This means GAAR will be applicable to assessments for the financial year commencing 1 April 2015.

This is positive news for foreign investors, who will welcome the legislative change being pushed back from its original implementation date of 1 April 2014.

Most of the other recommendations made by the Parthasarathi Shome-led expert committee were also accepted, including requirements regarding the make-up of the GAAR Approving Panel, the transaction value threshold for GAAR to be invoked, and a softening of the GAAR application criteria so that obtaining a tax benefit must be the main purpose for an arrangement.

Read the full article on the Indian GAAR delay

Your media contact for further queries is:
Barnaby Fry, MHP
T. +44 (0)203 128 8215

Quality tax advice, globally

Taxand's Take

"Finance Minister Chidambaram has decided to take a middle path approach by deferring GAAR by 2 years instead of 3 years as recommended by the expert panel."

Taxand's Take Author

Mukesh Butani
Taxand Board member