The delay in implementation of anti-tax avoidance rules, known as GAAR, will not significantly impact steps to check tax evasion or curb proliferation of black money.
This was stated by Finance Minister P. Chidambaram in a written reply in the Lok Sabha on Wednesday.
Bowing to foreign investors’ demands, the Government had postponed the GAAR implementation by a year to April 1, 2013. The provisions are now to be applicable for assessment year 2014-15 and subsequent years.
After the placement of the first draft of the GAAR guidelines in the public domain, as many as 14 representations have been received from institutions/individuals, Chidambaram said.
Some of these are ALSTOM, Alternative Investment Management Association, Bombay Chambers of Commerce & Industry, US Council for International Business and PricewaterhouseCoopers.
The implementation of these provisions will be in line with guidelines that are to be prescribed through subordinate legislation.
The Centre had, on July 17, set up an expert committee to receive feedback on the first draft and also prepare a second draft of the guidelines.
The Committee will undertake wider consultations and thereafter submit the revised guidelines and a roadmap for GAAR implementation by September 30.