Thus far for GAAR.

Our most revered Finance Minister surrendered to the market. This year's budget contained a proposal for General Anti Avoidance Rules which was designed to stop companies avoiding tax by buying or selling assets in India through shell companies in tax havens. Vodafone had purchased a telecom company, Hutch through a company registered in the Cayman Islands and refused to withhold capital gains tax from the seller, Hutchison Whampoa in spite of being told to do so. In principle the rules were correct saying that India is not a tax haven and that you have to pay tax somewhere in the world and if we have a double tax avoidance treaty with that country then you will not be liable for tax in India. Vodafone, used to avoiding tax in Britain, tried to be too smart. The trouble was that it opened up many such past transactions to scrutiny and gave too much power to Income Tax officials. Foreign companies mounted a campaign against the measure putting pressure on the Sensex and the rupee. Yesterday, it was announced that GAAR has been postponed for one year which means it has been killed off. The Sensex was down 320 points but ended the day 82 points higher than the previous day and the rupee climbed over 50 paisa. However, both are down today as the euphoria has worn off and traders have concentrated once again on fundamentals which are dismal. So dismal that the army is waiting since 2009 for better bullet proof vests and ballistic helmets. Present vests are too heavy and not as effective resulting in the deaths of 150 soldiers every year in Kashmir at the hands of terrorists. The new jackets are lighter and more protective. It can be reinforced with hard armour plates to protect vital areas of the body. TOI, May 3. The army wants 1,86,168 such vests urgently but is still waiting. However, our politicians do not need to wait. In 3 years since April, 2009 VIPs have used Indian Air Force planes and helicopters on 1889 occasions racking up a bill of Rs 288.3 million of which Rs 113 million are still outstanding. msn.com, May 8. Indeed, our most revered Prime Minister is entitled to use IAF planes for non-official purposes, which he did to the tune of Rs 141.7 million. What exactly is a non-official purpose? Attending a wedding, shopping for vegetables, urgent need for a bathroom? While IAF pilots are working taxi services Chinese planes cross over into our air space without challenge. A new house, with a plinth area of 4100 sq ft, was being built on defence land in Pune for our most revered President to live in after retirement. She was " pained " when questioned about its propriety and has given up the idea. Clinton bought a house in New York to live in after completing his term. Jackie Kennedy and her children were not allowed to stay forever in Rs 3 billion houses after John Kennedy was assassinated. It is embarrassing to be a citizen of a country ruled by criminal beggars. Do we deserve this?