Please find attached the tax alert on the recent Expert Committee’s report on General Anti Avoidance Rules (GAAR) of India. The report is available in the public forum for comments and suggestion up till 15 September, 2012 after which it shall be finalised paving down the road map for implementation of GAAR.
Further, we wish to inform of the visit of Indian delegation as a part of joint working group in Mauritius in the last week of August for discussion on the Mauritius – India tax treaty. The talks took place in a cordial manner and progress was made on the issues of exchange of information and assistance in the collection of taxes. Mauritius has assured its full support to India in regards to treaty misuse and money laundering. However, no detailed discussion happened on the limitation of benefit clause as the Indian delegation was expecting the expert committee’s report on GAAR. The two parties have agreed to meet again in near future once the draft guidelines on GAAR are finalised.
We hope you will find the tax alert informative and will look forward for your comments and observations.