GAAR – Scope of the Terms of Reference of the Expert Committee headed by Dr. Parthasarathi Shome ON GAAR Expanded to Include all Non-Resident Tax Payers Instead of Only FIIs
Press Release, dated 1-9-2012
The Standing Committee on Finance has presented its report on Current Economic Situation and Policy Options to Parliament on August 30, 2012. The Committee has inter alia found that the investment climate in the country has suffered serious setback and investors confidence has been hit mainly because of the concerns over the impact of retrospective tax laws and new General Anti Avoidance Rules (GAAR).
The Government had constituted an Expert Committee headed by Dr. Parthasarathi Shome on GAAR on July 13, 2012. The Committee has now submitted its draft report, which has been placed in public domain on September 1, 2012 for seeking suggestions/opinion of the various stakeholders.
The Government had earlier on August 6, 2012 also requested the Expert Committee to examine the applicability of the amendment on taxation of non-resident transfer of assets where the underlying asset is in India, in the context of Foreign Institutional Investors (FIIs) operating in India purely for portfolio investment. It has now been decided to expand the scope of the Terms of Reference of the Committee to include all non-resident tax payers instead of only FIIs.
GAAR – Constitution of an Expert Committee on GAAR to undertake stakeholder consultations to finalize the guidelines for General Anti Avoidance Rules (GAAR) – Scope of terms of Reference of Expert Committee on GAAR expanded
Office Memorandum [F. No. A.50050/95/2012-Ad.I], dated 1-9-2012
The undersigned is directed to refer to Department of Revenue’s O.M. of even numbers dated 17th July, 2012 and 6th August, 2012 on the above cited subject and to say that the additional Terms of Reference (v) mandated for the Expert Committee on GAAR through O.M. dated 6th August, 2012 has been modified as under:
“(v) Examine the applicability of the amendment on taxation of non-resident transfer of assets where the underlying asset is in India, in the context of all non-resident taxpayers”.
2. The Expert Committee on GAAR may examine the above issue and submit its recommendations to the Government by 30th September, 2012.