PwC seeks GAAR clarity on various M&A deals

As mergers and acquisitions gain momentum in India, tax consultant PwC has said the income-tax department should provide more clarity on General Anti-Avoidance Rules (GAAR) on these activities.

GAAR will be effective from the next financial year.

PwC wants clarity on things such as consolidation through amalgamation by which the losses of certain entities are set off against the profits of others.

Also, it should be made clear whether GAAR will be invoked when a private limited company is converted into a limited liability partnership (LLP) and its profits are distributed, the tax consultant says in its