New Delhi: The GAAR (General Anti-Avoidance Rules) draft guidelines released by finance ministry have entered into controversy with PM Manmohan Singh reportedly maintaining a distance from it and saying that he will give his nod after getting full reactions on it.
In an issued statement, the Prime Minister Office (PMO) said that final decision on GAAR will be taken by him after receiving proper feedback.
The PMO release said, "These (draft guidelines) have not been seen by the Prime Minister and will be finalized with the approval of the Prime Minister, who holds the Finance portfolio, only after considering the feedback received. The GAAR guidelines that have been put up on the government website from the official level of the Finance Ministry and shared with some stakeholders are only draft guidelines and have been put out for receiving wide-ranging feedback and for discussion purposes only."
The GAAR draft guidelines include details on budgetary proposal to check tax evasion. The draft guidelines seek to address the investors concerns over tax proposal misuse. The stakeholders are asked to comment on draft rules by 20 July.
Meanwhile, Finance Secretary RS Gujral has said that the final guidelines will come into effect after consulting with PMO. Chief Economic advisor, Kaushik Basu had said that there will be no move to dilute GAAR guidelines. Speaking on the development, he said,"I don't think that any policy step (of recent months) has been diluted."
"The message we were giving actually for last couple of months, including during the time when Pranab Mukherjee was the Finance Minister, is the same message, that we want this industry to do well and we want to be as cooperative as possible," he concluded.