Shome panel to submit final GAAR report on Monday

The Shome Committee's final report on general anti-avoidance rule (GAAR) will be released on Monday. CNBC-TV18's Akanksha Sethi reports with what you can expect.

Monday will bring some clarity onto the tax controversy that has been plaguing the country. The Shome Committee will submit two reports. The first is the final GAAR report, which is likely to maintain what the panel has said in the first draft report, i.e. GAAR should be deferred by three years and there should be zero capital gains tax.
It is also going to submit a report on the unintended consequences of the retrospective amendment and is likely to dilute these consequences. For instance, it is likely to suggest that participatory notes (P-notes), American Depository Receipts (ADRs), Global Depository Receipts (GDRs) and other such instruments where the underlying is in India should be exempt from the Section 9 retrospective amendment.
Also, indirect transfer of an asset, when listed on a recognized stock exchange, should be kept out of the ambit of Section 9. It will leave stock market transactions out of the retrospective amendments. It has also discussed the possibility of recommending to the government making the retrospective amendment prospective remains to be seen if that is indeed included in the final recommendations.
The recommendations will be upto the government to accept or reject. Related Stories

• GAAR can't be used to generate revenues: Shome
• No rash action in Vodafone case: Chidambaram
• Recommendations on GAAR kindle investors hopes: Emkay