GAAR

41 FAQ’s on Statutory Provisions for General Anti Avoidance Rule (GAAR) in India

Income Tax - (Under Chapter X-A of Income Tax Act (ITA), 1961) Statutory Provisions for GAAR in India (Section 95 to 102 of ITA 1961) 1. Meaning for GAAR’s provisions (Section 95) (i) Some arrangements made by assessee (taxpayer) may be declared Impermissible Avoidance Arrangement (IAA) by revenue deptt. + also taxpayer required to pay consequent (a...

Application of GAAR Provisions cannot be a ground for denial of Tax benefit under India- Singapore DTAA

Income Tax - Held that, though domestic GAAR provisions are applicable, the treaty benefit cannot be denied to the assessee. Revenue Department to delete disallowance of STCG and allow benefit of provisions of India- Singapore DTAA. ...

Best Practices of Corporate Governance In Developing World: A Unified Perspective

Income Tax - Introduction: Income taxes are a significant cost for successful firms, frequently accounting for 25% or more of pretax income. In order to examine rival agency-based and risk-based explanations of corporate tax planning, this study takes advantage of a setting—the market for corporate control. We find a considerable decrease in tax eva...

GAAR- General Anti Avoidance Rules

Income Tax - If any transaction is treated as Impermissible Avoidance Arrangement under GAAR then in such case accommodating party will be disregarded. But again to invoke the provision of GAAR, the Tax Benefit to all accommodating party shall exceed Rs 3 Crore. This gives the window of Tax planning i.e., overall tax benefit in the relevant previous [...

Can GAAR Override DTAA?

Income Tax - Well Friends, this seemingly short and pinpointed question (Can GAAR Override DTAA?), has in-seemingly long and abstract answer, in the absence of any specific legal precedent in this regard, in India, as of now. However, in this article, I am making an honest and sincere attempt to find a plausible, logical and well-reasoned answer to [&...

Tax Audit Report- Applicability of Clause 30C & Clause 44 deferred

Income Tax - Tax Audit Report (Form 3CD- Applicability of Clause 30C & Clause 44 deferred till March 31, 2021 Central Board of Direct Taxes (CBDT) has issued Circular No. 10/2020 dated April 24, 2020 by which the CBDT has deferred the applicability of certain Clause of Form 3CD (Tax Audit Report) till March 31, 2021. Order under […]...

GST FAQs for Real Estate; Deferment of Implementation of GST details in Form 3CD

Income Tax - A. CBIC has released 2 sets of FAQ on Real Estate on new GST Rate Structure: There has been number of issues reported by various stake holders on the new GST Rate Structure for Real Estate Sector. Considering the issues, CBIC has issued compilation of 2 sets of FAQ for the guidance and easy understanding […]...

Taxation of Digital Businesses

Income Tax - The Government has not held any consultation regarding taxation of digital businesses as such. However, to address the challenges posed by the enterprises who conduct their business through digital means and carry-out activities in the country remotely, the following measures have been taken:...

Guide to new Tax Audit Report Clauses WEF 20.08.2018

Income Tax -  Implementation Guide w.r.t. Notification No. 33/2018 dated 20.07.2018 effective from 20.08.2018 – (23-08-2018) The Central Board of Direct Taxes, vide Notification No. 33/2018/F No. 370142/9/2018-TPL dated 20th July 2018, notified amendments to Form No. 3CD enhancing substantially the reporting requirements and the role of tax aud...

ICAI represents on Revised Form 3CD – Demands Deferment of Revised 3CD

Income Tax - ICAI vide its representation suggested CBDT to that changes made in Form No. 3CD be implemented from AY 2019-20 for smooth implementation and compliance. It is further suggested that the new clauses may be reconsidered and appropriately modified preferably after due consultation with the stakeholders....

GAAR cannot be invoked merely for being a party to tax avoidance, ‘participation’ is pre-requisite: South Africa HC

ABSA Bank Limited Vs Commissioner, South African Revenue Service (High Court of South Africa) - ABSA Bank Limited Vs Commissioner, South African Revenue Service (High Court of South Africa) FULL TEXT OF THE JUDGMENT/ORDER of SOUTH AFRICA HIGH COURT Introduction [1] The applicants, Absa Bank Ltd and its wholly owned subsidiary Absa Towers (Pty) Ltd hereafter referred to, collectively, as Absa, ...

CBDT deffer GST & GAAR Reporting in Tax Audit Report by one more year

Circular No. 10/2020-Income Tax - (24/04/2020) - Income Tax Circular No. 10/2020-Income -Regarding reporting requirement under clause 30C and clause 44 of the Form 3CD defers GST & GAAR Reporting in amended Income Tax Audit Report amidst Covid-19. Income Tax Circular No. 10/2020 F.No. 370142/9/2018-TPL Government of India Ministry of Finance D...

CBDT defers furnishing of GST & GAAR details in Form 3D till 31.03.2020

Circular No. 09/2019-Income Tax - (14/05/2019) - Reporting requirements under clause 30C (pertaining to General Anti-Avoidance Rules (GAAR)) and clause 44 (pertaining to Goods and Services Tax (GST) compliance) of the Form No. 3CD is been kept in abeyance till 31st March, 2020. Circular No. 09/2019-Income Tax F. No. 370142/9/2018-TPL Government of...

No need to report clause 30C (GAAR) & 44 (GST) of Revised 3CD Report till 31.03.2019

Circular No. 6/2018-Income Tax - (17/08/2018) - Representations have been received by the Board that the implementation of reporting requirements under the proposed clause 30C (pertaining to General Anti-Avoidance Rules (GAAR)) and proposed clause 44 (pertaining to Goods and Services Tax (GST) compliance) of the Form No. 3CD may be deferred....

16 FAQS on implementation of GAAR provisions

Circular No. 07/2017-Income Tax - (27/01/2017) - Question no. 1: Will GAAR be invoked if SAAR applies? Answer: It is internationally accepted that specific anti avoidance provisions may not address all situations of abuse and there is need for general anti-abuse provisions in the domestic legislation. The provisions of GAAR and SAAR can coexist an...

CBDT notifies dates for General Anti Avoidance Rule

Notification No. 49/2016-Income Tax - (22/06/2016) - Application of General Anti Avoidance Rule- 10U. Chapter X-A not to apply in certain cases.—(1) The provisions of Chapter X-A shall not apply to—any income accruing or arising to, or deemed to accrue or arise to, or received or deemed to be received by, any person from transfer of investments ma...

Recent Posts in "GAAR"

41 FAQ’s on Statutory Provisions for General Anti Avoidance Rule (GAAR) in India

(Under Chapter X-A of Income Tax Act (ITA), 1961) Statutory Provisions for GAAR in India (Section 95 to 102 of ITA 1961) 1. Meaning for GAAR’s provisions (Section 95) (i) Some arrangements made by assessee (taxpayer) may be declared Impermissible Avoidance Arrangement (IAA) by revenue deptt. + also taxpayer required to pay consequent (a...

Posted Under: Income Tax |

Application of GAAR Provisions cannot be a ground for denial of Tax benefit under India- Singapore DTAA

Held that, though domestic GAAR provisions are applicable, the treaty benefit cannot be denied to the assessee. Revenue Department to delete disallowance of STCG and allow benefit of provisions of India- Singapore DTAA. ...

Posted Under: Income Tax |

Best Practices of Corporate Governance In Developing World: A Unified Perspective

Introduction: Income taxes are a significant cost for successful firms, frequently accounting for 25% or more of pretax income. In order to examine rival agency-based and risk-based explanations of corporate tax planning, this study takes advantage of a setting—the market for corporate control. We find a considerable decrease in tax eva...

Posted Under: Income Tax |

GAAR- General Anti Avoidance Rules

If any transaction is treated as Impermissible Avoidance Arrangement under GAAR then in such case accommodating party will be disregarded. But again to invoke the provision of GAAR, the Tax Benefit to all accommodating party shall exceed Rs 3 Crore. This gives the window of Tax planning i.e., overall tax benefit in the relevant previous [...

Posted Under: Income Tax |

Can GAAR Override DTAA?

Well Friends, this seemingly short and pinpointed question (Can GAAR Override DTAA?), has in-seemingly long and abstract answer, in the absence of any specific legal precedent in this regard, in India, as of now. However, in this article, I am making an honest and sincere attempt to find a plausible, logical and well-reasoned answer to [&...

Posted Under: Income Tax |

Role of DTAA and GAAR In Treaty Shopping

Role of Double Taxation Avoidance Agreement (DTAA) and General Anti-Avoidance Rules (GAAR.) In Treaty Shopping To understand treaty shopping we need to understand what a DTAA is, A double tax avoidance agreement is a tax treaty agreed by two states to ensure that a tax payer is not taxed twice for the same income, this […]...

Posted Under: Income Tax |

GAAR cannot be invoked merely for being a party to tax avoidance, ‘participation’ is pre-requisite: South Africa HC

ABSA Bank Limited Vs Commissioner, South African Revenue Service (High Court of South Africa)

ABSA Bank Limited Vs Commissioner, South African Revenue Service (High Court of South Africa) FULL TEXT OF THE JUDGMENT/ORDER of SOUTH AFRICA HIGH COURT Introduction [1] The applicants, Absa Bank Ltd and its wholly owned subsidiary Absa Towers (Pty) Ltd hereafter referred to, collectively, as Absa, seek to review two decisions of the resp...

Common strategies used to avoid Permanent Establishment status

Avoidance of Permanent Establishment (PE) status of Non-Residents are made through various arrangements. Company structures their business in way that status of PE can artificially be avoided. The definition of permanent establishment included in tax treaties is therefore crucial in determining whether a non-resident enterprise must pay i...

Posted Under: Income Tax |

GAAR and PPT: Beginning of a new era of co-existence?

The global tax landscape is constantly evolving to keep pace with ever-changing business models and structures. Introduction of the Base Erosion and Profit Shifting (BEPS) project by OECD/G-20 in the year 2016 was one such significant international stepsince the advent of bilateral tax treaties, wherein more than 100 countries collaborate...

Posted Under: Income Tax |

Ruling on Benefit of India–Mauritius Treaty on Capital Gains (POEM/PPT/GAAR)

AAR – Ruling on Benefit of India–Mauritius Treaty on Capital Gains taken by Tiger Global International Group in respect of Shares of Flipkart (Singapore Co) sold by Mauritius based Co to a Company in Luxembourg (which is controlled by Walmart) and the value of shares is derived from assets located in India Summary of Case […]...

Posted Under: Income Tax |

Browse All Categories

CA, CS, CMA (6,764)
Company Law (9,808)
Corporate Law (13,026)
Custom Duty (10,582)
DGFT (5,115)
Excise Duty (5,581)
Fema / RBI (5,654)
Finance (6,359)
Income Tax (48,822)
SEBI (5,249)
Service Tax (4,849)