as suggested by the review committee. Otherwise, some uncertainty will prevail in relation to the transactions on and from August 30, 2010, until the date of actual implementation. Helpful clarifications have been provided in relation to the approving panel, which will examine the applicability of GAAR on transactions. However, it is announced that directions issued by the approving panel will be binding on both the tax authorities as well as the taxpayer. This is a new development and will impact the forums available to the taxpayer to dispute applicability of GAAR on eligible transactions.
Hopefully, the Finance Bill 2013 expected next month will create a fine balance between the interests of revenue and the taxpayers and provide much-needed clarity on the issues discussed.
The author is partner, J Sagar Associates. Views are personal