NEW DELHI, May 5: More than 300 industry bodies affiliated with ASSOCHAM have suggested postponement of the introduction of General Anti-Avoidance Rule (GAAR) till next year so that it could be thoroughly debated with all the stakeholders.
National Council on Direct Taxes Chairman Ved Jain said ‘The new rules should be put off by a year till the Direct Tax Code (DTC) comes into effect.’
He said every citizen and corporate entity has the right to plan so that tax liability is minimum. ‘These retrospective amendments have primarily been made to neutralise decisions of the various Income Tax Appellate Tribunals, High Courts and even the Supreme Court.’
Countries like the United Kingdom have still not implemented GAAR.
Mr Jain also opposed application of transfer pricing to domestic transactions also and urged the government to repose confidence and consider the tax payer a partner in economic growth, rather than treating him or her as tax evader unless proven innocent.
(UNI)
Follow our WhatsApp channel