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The government is yet to decide on whether the controversial general anti-avoidance tax law GAAR should be implemented as scheduled and has enough time to review that, an official said today.
"The issue of GAAR was not on the table for this Budget. It was not an issue on which the government had to make an announcement in this Budget. The deferment of GAAR till March 31, 2015... We are still about eight months away from that," Revenue Secretary Shaktikanta Das said in a post-Budget interaction with industry body CII.
"There is enough time for the government to review that and it is the fact that the new government is yet to take view on GAAR," he added.
The government had earlier proposed imposing the General Anti-Avoidance Rules (GAAR) from April 1, 2015, for those claiming tax benefit of over Rs 3 crore. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens.
As per the existing proposal, investments made after March 2013 will be covered under GAAR with effect from assessment year 2016-17.
The issue came to light after Minister of State for Finance Nirmala Sitharaman, in a written reply to the Lok Sabha last week, said that GAAR will be applicable from April 1, 2015.
On Goods and Services Taxes (GST), Das said: "The government is committed to bringing about GST during this fiscal year and we are working towards that."
On Direct Taxes Code (DTC), he said that we have DTC draft bill which is based on inputs of recommendations of Parliamentary Standing Committee and the government will analyse it.
Speaking on the occasion, CII President Ajay Shriram said: "The Budget has presented a pragmatic and extensive toolbox of instruments dedicated to boosting investor sentiments and reinvigorating the investment pipeline.
