Prime Minister Dr Manmohan Singh today expanded the terms of reference of the General Anti-Avoidance Rules, GAAR, committee by referring the issues relating to taxation of Foreign Institutional Investors, FIIs and portfolio investors to it with a view to provide greater clarity to them.

The Prime Minister Office said in a statement that it is necessary to have clarity on the tax liability of portfolio investors and FIIs as a result of this amendment (relating to GAAR), particularly, when the investment is made through a registered stock exchange in accordance with SEBI guidelines and purely in the form of portfolio investment.

Making additional reference to the committee, the statement said any clarification needs to be harmonised with the GAAR guidelines and will have to address any residual concerns outside of GAAR.

Earlier this month, the Prime Minister had set-up a panel headed by ICRIER chief and taxation expert Parthasarathi Shome to bring greater clarity and prepare a roadmap for GAAR by September 30 for its implementation.