'Deferring of GAAR would have made investors glad'

Amrish Shah, Transaction Tax Leader, EY

On M&A 

"The deferral of GAAR and the grandfathering of its impact on investments made till March 31, 2017 is the key highlight that every investor would be glad about. In addition, the clarity on certain ambiguities relating to indirect transfer taxation - viz. threshold of 50 percent of the value derivation from Indian assets for its applicability, exemption to small shareholders as also pursuant to foreign mergers/demergers, proportional taxation linked to value residing in India are a welcome step. It would have been good if the clarification that MAT would not be applicable only to FIIs was made more broad based especially as the foreign investments under FPI and FDI regimes are to be consolidated."