After continued pressure, the General Anti-Avoidance Rules (GAAR) has finally been announced to be deferred for one year. The announcement was made by the Finance Minister Pranab Mukherjee on Monday.
He said that the jewelry industry will be provided relief from GAAR for the next one year but at the same time mentioned that no concession will be given to Vodafone in case of their tax dispute. Submitting the Finance Bill of 2012 to the parliament, Pranab said that the capital gains tax has been slashed to half bringing it down to 10% instead of 20% and the rules and regulations for the arrest of violating Customs Act have also been relaxed to a certain extend.
He said, “The government has decided to withdraw the levy [one per cent excise duty] on all precious metal jewellery, branded or unbranded, with effect from March 17, 2012.”
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