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. “Clarification is provided for investments made prior to April 1, 2017 and also to bonus on these shares, splits and consolidation thereon and shares acquired on the conversion of compulsory convertible instruments.”
“(These are) very credible and serious clarifications by the Government covering some of the most practical situations often faced by businesses/investors,” said Sanjay Sanghvi, Tax Partner at Khaitan & Co. “It will help in a fair administration of GAAR provisions while providing clarity to tax advisors and taxpayers and avoiding uncertainty and anxiety.”
