The Discussion revolves around the current burning topic of General Anti- Avoidance Rules (GAAR) and the progress of its implementation in India. Bringing it within the statutory framework of India has become inevitable taking into account the plethora of cases on tax avoidance with no definite guidelines for the judiciary to rely upon. The Union Budget 2012- 13 mirrored the provisions of the Direct Taxes Code, 2010 and generated the same kind of criticism and apprehensions from the investors.
However, the release of the Draft Guidelines on GAAR on 29th June, 2012 tried to bring forward a picture of GAAR which balances both investor and revenue concerns. But the reaction of the investors was clearly unwelcoming and decreasing investments forced the Govt to appoint the Shome Committee to rework the guidelines. The recommendations of the Shome Committee were incorporated and a modified form of GAAR were introduced in this year’s budget. But the enforcement is still as far as April, 2016. The implementation of the GAAR provisions will reveal whether these provisions become an effective tool for curtailing tax avoidance or remain a mere paper tiger. The paper therefore, discusses the current implications of GAAR in India in the light of its broad coverage and apprehensions of the investor fraternity.
Post Contributed By:
Abhishek Bhargava
Indian Institute of Legal Studies
