The expert committee on GAAR, as constituted by the Prime Minister, has submitted its report. Inter-alia, the key recommendations of expert committee are as under: 1) GAAR should be deferred by three years; 2) GAAR should be applicable only if a tax benefit of Rs. 3 crore and above has been obtained by the taxpayer; 3) In case of deferral of tax benefit, present value of tax benefit should be considered; 4) Non-applicability of GAAR on a resident of Mauritius holding valid tax residency certificate; 5) GAAR should not be applicable if FII offers to be taxed under domestic laws; 6) GAAR should not be applicable if non-resident invests in listed securities through FIIs; 7) Abolition of tax on gains arising from transfer of listed securities (both capital gains and business income); 8) Grandfathering of existing structures or investment. In other words, only income arising after implementation of GAAR should be subject to provisions; 9) GAAR should not be allowed to over-ride the anti-avoidance provisions of treaties (i.e. limitation of benefit, etc.); 10) Onus should be on revenue to prove if a transaction is impermissible avoidance agreement; 11) Amendment to the Act to provide that only arrangements with sole purpose (and not one of the main purpose) of obtaining tax benefit should be covered under GAAR; 12) Tax consequences of 'impermissible avoidance arrangements' should be limited to the tainted part of the transaction; 13) Definition of 'connected person' under Sec. 99 should be restricted to 'associated person' and 'associated enterprise' only; 14) AAR should decide the GAAR cases within 6 months; 15) A 'negative list' for the purpose of invoking GAAR should be provided; 16) 'Tenure of arrangements, payment of taxes and an option to exit' should be given due weightage while deciding if arrangements lack commercial substance; 17) GAAR not to be invoked if taxpayer submits a satisfactory undertaking to pay tax along with interest in case GAAR provisions are made applicable in relation to the remittances; 18) Tax auditor should report the probable transaction which may accrue to the tax payer a tax benefit of Rs. 3 crore and above; 19) Extensive training of Assessing officer to be placed in the regime of International Taxation; and 20) Various illustrations have been given where GAAR will be considered as applicable or not applicable. | 
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