GOVERNMENT OF INDIA

MINISTRY OF FINANCE

LOK SABHA

UNSTARRED QUESTION NO: 181

ANSWERED ON:22.02.2013

GENERAL ANTI AVOIDANCE RULES

(a)whether the Government has deferred the implementation of General Anti-Avoidance Rules (GAAR) by another two years to April 1, 2016;

(b)if so, the details thereof and the reasons therefor;

(c)whether the Expert Committee constituted to receive feedback on GAAR guidelines has examined the suggestions/representations received from various stakeholders and submitted its report to the Government;

(d)if so, the details thereof including the recommendations made by the said committee; and

(e)the follow-up action taken by the Government in this regard? 

ANSWER

 (a) and (b) Yes Madam. Having considered the recommendations of the Expert Committee it has been decided by the Government that GAAR provisions shall be applicable from 1st April, 2016.

(c) Yes Madam.

(d)The Committee had submitted its report to the Government on 30th September, 2012. The full report has been uploaded on the official website of the Finance Ministry on 14th January, 2013. Summary of the major recommendations of the Committee on GAAR are enclosed as Annexure 1.

(e)The recommendations of the Committee have been examined and some of the recommendations have been accepted. A gist of the decisions of the Government is enclosed as Annexure 2. The implementation would be done through required legislative changes in due course.