Finance Minister Arun Jaitley had in his Budget speech in 2015, deferred GAAR implementation by two years and also said that the investments made up to March 31, 2017 shall not be subjected to GAAR. The government’s resolve to stick to the rollout date for the GAAR regime announced in the 2016 Budget was reflected in clarifications issued by the Finance Ministry on Friday. CBDT’s clarifications indicate that the implementation of GAAR “is unlikely to be deferred,” said Girish Vanvari, Partner and National Head of Tax at KPMG India. “Most new treaties being signed are with the LOB clause. It has also been clarified that GAAR would not apply if an arrangement was permitted by the Authority for Advance Rulings.

Source: The Hindu January 27, 2017 14:37 UTC