Market sentiment has taken a beating following new provisions to the General Anti-Avoidance Rules (GAAR) rules. Even though finance minister Pranab Mukherjee assured India Inc that Income Tax officials would not have powers to arrest industrialists or company officials, apprehensions still linger.
GAAR is a part of the Direct Tax Code (DTC) which was proposed in the Budget. The rule is aimed at complicated deals where one of the purposes is to avoid tax.
In an interview to CNBC-TV18, Rahul Chadha, head of India investment/associate director, Mirae Asset Global Investments says he has seen fairly large investors coming through their own registered accounts on P-Notes (participatory notes) but that a fair bit of these accounts are registered through Mauritius.