Budget 2015: GAAR may be deferred by two years to boost business sentiment

ET: Feb 12, 2015

NEW DELHI: The much-feared general anti avoidance rules (GAAR) could be deferred  by about two years so that business sentiment is allowed to improve in India but  will need to be rolled out in some form or the other by 2017, in sync with the  international framework on preventing treaty abuse that’s been accepted by the  G20. Globally there has been agreement on moving toward a multilateral framework  and complementing this with domestic laws to deal with treaty shopping.  GAAR, which aims to minimise tax avoidance for investments made by entities based in tax  havens, is to come into effect on April 1 but the government doesn’t want to  jeopardize the investment drive just as its economic agenda gets under way,  especially since sentiment continues to remain fragile.


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