THE Shome Panel on GAAR, which was later given additional mandate to give valuable commentaries on retrospective amendments approved by the Parliament in Budget 2012, has finally given its valuable recommendations not to collect any interest under Ss 234A, B, C and 201(1A) to be charged for the demand originating from retro amendments. To save them from the hassles of going through the process of waiver by CCIT, it has advised CBDT to issue a Circular granting such a waiver. And in such cases, no penalty proceedings should be initiated, it has added.

The Panel is of the view that no person should be treated as assessee in default under section 201 of the Act, or a representative assessee of a non-resident, in respect of a transaction of transfer of shares of a foreign company having underlying assets in India and where gains arising on such transfer is taxable in India on account of retrospective amendments carried out through Finance Act, 2012.

It has also suggested that the dividend paid by a foreign company should not be taxed in India under section 9(1)(i) read with Explanation 5. There are many more recommendations, which can be read by clicking on this Link - Retro Amendments Report