GAAR implementation deferred by 2 yrs to 1st April 2016

New Delhi:(Page3 News Network)-The implementation of General Anti Avoidance Rules, GAAR has been deferred by two years, It will now come into force from Ist of April 2016. Earlier, the provisions of GAAR were to be implemented from 1st of April, 2014. Talking to media persons in New Delhi today, Finance Minister P Chidambaram said that the Government has accepted major recommendations of the Shome Committee on GAAR with some modifications. 
Mr. Chidambaram said that an arrangement, the main purpose of which is to obtain a tax benefit would be considered as an impermissible avoidance arrangement.
The current provision which prescribed the main purpose or one of the main purposes will be amended accordingly. He said the assessing officer will be required to issue a show cause notice, along with reasons to the assessee before invoking the provisions of the rules. The Finance Minister said the assessee will have an opportunity to prove that the arrangement is not an impermissible avoidance one.
Mr. Chidambaram said that GAAR will not apply to those Foreign Institutions Investors, FIIs who are not taking any benefit under an agreement under the Income Tax Act. Besides, it will also not apply to non resident investors in FIIs. Our correspondent reports that the panel headed by Dr. Parthasarathi Shome had submitted its report in September last year. 
It had recommended that companies should be retrospectively taxed only in the rarest of rare cases. The setting up of the panel was approved in July last year by the Prime Minister Dr. Manmohan Singh in the wake of representations against some of the provisions of GAAR.

NEWS AT A GLANCE

Prime Minister’s Shram Awards for 2011 Announced

• The Prime Minister’s Shram Awards for the year 2011 have been announced. A press note to this effect has been issued today by the M/o Labou...
• 8th North East Business Summit Begins
  New Delhi:(Page3 News Network)- The Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER) Shri Paba...
• Pravasi Bhartiya Divas Convention
  Kochi:(Page3 News Network)- The President of India, Shri Pranab Mukherjee today (January 9, 2013) delivered the valedictory address at the ...
• Chiranjeevi Announces Campaign “Land of Pi”
  New Delhi:(Page3 News Network)- Recognizing the importance of cinema as a powerful tool for the development and promotion of various tou...
• Commissioning of inshore Patrol Vessel
  Chennai  :(Page3 News Network)- Indian Coast Guard Ship ‘ICGS-Rajkamal’, the fourth in the series of eight Inshore Patrol Vessels (IPVs) d...
• 2 army jawans killed in attack by Pak troops along LoC in J&K
  Jammu:(newsonair) - In Jammu and Kashmir, two army jawans were reportedly killed by Pakistani troops in an attack on a patrol party along ...
• USAC was linked to National Remote Sensing
  Dehradun:(Page3 News Network) -   Chairing 7 th Governing Body of Uttarakhand Space Application Centre (USAC) at Secretariat on Tuesday...
• Amendment to Section 15M of SEBI Act, 1992
  New Delhi:(Page3 News Network)- The Cabinet today approved the proposal of the Department of Economic Affairs for amendment to Section 15M...
• PM's Address at the 11th Pravasi Bharatiya Divas
  Kochi:(Pib)- Prime Minister, Dr. Manmohan Singh’s address at the 11th Pravasi Bharatiya Divas in Kochi today:   “On the occasion of th...
• WHO Congratulates India for National Regulatory Authority for Vaccines
  New Delhi:(Page3 News Network)- WHO congratulated India on recent success in WHO’s assessment of the country’s National Regulatory Autho..