The Central Board of Direct Taxes notified on Friday that GAAR will be implemented on April 1, 2017. Tax Department's clarification on the implementation of GAAR provisions provides "certainty and clarity" in the tax rules and will rekindle the confidence of global investors, India Inc said today. Industry body Assocham termed as a "positive development" the Central Board of Direct Taxes (CBDT) assertion that General Anti-Avoidance Rules (GAAR) would be applicable from April 2017. Issuance of clarifications on implementation of GAAR provisions is a move towards the government's commitment to provide certainty and clarity in the tax rules, CII Director General Chandrajit Banerjee said. Seeking to assuage concerns of investors, CBDT said GAAR provisions shall be effective from assessment year 2018-19 onwards and "shall not be invoked merely on the ground that the entity is located in a tax efficient jurisdiction".

Source: dna January 28, 2017 04:55 UTC