Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: ACCOUNTING STANDARDS :: empanelment :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TDS
 
 
News Headlines »
 How to claim income tax refund
 How to time your buys to have best of two tax regimes
 Here's why you must always check Form 26AS before filing tax return
 Want to file your income tax return after June 30? Having Aadhaar card is a must
 Timeline for filing of tax returns extended by two months
 Top 5 common mistakes to avoid while filing your income tax returns
 GST rollout on July 1: Deadline for filing tax returns extended
 What is GST?
 Income-tax (15th Amendment) Rules, 2017?
 Banks get a breather as GST Council extends deadline for tax filing
 Income Tax filing: Your easy guide in 7 steps

Offshore funds hail CBDT for prior ruling norm
April, 12th 2016

Offshore funds have hailed the decision taken by the Central Board of Direct Taxes (CBDT) to provide the prior approval mechanism to foreign funds on tax liability in India.

Offshore funds have hailed the decision taken by the Central Board of Direct Taxes (CBDT) to provide the prior approval mechanism to foreign funds on tax liability in India. Fund managers and tax consultants FE spoke to said the circular was a step towards creation of a more consistent tax regime for foreign investors.

The new regulations have been added to the Income Tax Act as Section 9A and have come into effect from April 1, 2016. As per the new regime, once a fund receives pre-approval from CBDT, the benefits of Section 9A would not be denied to it unless the pre-approval itself is withdrawn under “limited circumstances”.

“In tune with the government’s policy, the notification does clarify some critical aspects, reduces the element of subjectivity, and also provides leeway as regards fulfillment of certain conditions for being eligible for the benefits provided in Section 9A of the Act. This indeed brings some relief to funds and fund managers,” said Bijal Ajinkya, partner at Khaitan & Co.

Offshore funds will attract a special taxation regime under Section 9A under which fund management activity carried out through an eligible fund manager in India will not lead to the residence of the fund in India, tax experts said.

The new rules have also provided offshore funds relaxation from investor diversification condition in the period of eighteen months or final closing of the fund in its setting up phase and in the one-year period of winding it up.

“The new regulations have been enacted to encourage some of the offshore funds to start operating from India, and will also help in reducing scope of litigation or arbitration for foreign funds. The rules will also curb any tax adventurism by tax officers,” said a senior tax consultant on condition of anonymity.

Last year, the government had waived the minimum alternate tax (MAT) on capital gains made by foreign institutional investors prior to April 1, 2015.

Through the amendment, the government had clarified that MAT provisions will not be applicable to FIIs/FPIs not having a place of business or permanent establishment in India for the period prior to April 1, 2015.

Offshore funds have hailed the decision taken by the Central Board of Direct Taxes (CBDT) to provide the prior approval mechanism to foreign funds on tax liability in India.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions