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GAAR will be effective April 1, 2017, onwards: CBDT

GAAR will not interplay with right of taxpayer to choose method of transaction

Safe-harbour margins may be cut to draw MNCs
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Press Trust of India New Delhi
Addressing investors' concerns ahead of GAAR implementation from April 1, the tax department today said it will not interplay with their right to choose a method of transaction and won't apply if routing of funds through a jurisdiction is "based on non-tax commercial considerations".

The General Anti-Avoidance Rules (GAAR), which seek to prevent companies from routing transactions through other countries to avoid taxes, can be invoked through a two-stage process involving a nod at the level of principal commissioner of income tax and a panel headed by a high court judge.

Seeking to assuage concerns of investors, CBDT said GAAR provisions shall be effective

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