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: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: TDS :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: empanelment :: VAT RATES :: cpt :: ACCOUNTING STANDARDS
Direct Tax »
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT
 Tax department changes rule for accommodating deductions for deferred spectrum payment
 Tax dept renotifies income computation, disclosure standards
 Sushil Chandra to be the next CBDT chief

Income Tax sleuths quiz PEs on source of funds, LPs
May, 28th 2016

Six domestic firms that have raised private equity (PE) money in the past few months have been quizzed by the income tax department, which is looking for detailed information on the source of funds and the identity of some limited partners (LPs), reports Deborshi Chaki and Khushboo Narayan in Mumbai.

Tax sleuths admitted the queries were a fallout of the recommendations of the special investigation team (SIT) on black money but said no investigation has been ordered against any of the six companies yet. “The department can seek information from an assessee,” an official said.

A sizeable chunk of domestic PE money is sourced from multiple tax jurisdictions overseas and is invested in unlisted Indian companies.

A couple of PE players confirmed the frequency of such queries had risen sharply of late.

The queries are understood to be driven by concerns some promoters could be using the PE route to channel black money, passing it off as legitimate investments, also known as round tripping.

“We were recently called by the I-T department to provide details of our investors,” said a senior partner of a domestic PE fund, who did not wish to be named.

Another fund manager of a large domestic buyout fund also admitted to receiving similar queries. “The officials wanted to know if the promoters of a company, in which we recently invested, had a financial involvement in our fund,” he said.

Senior income tax officials clarified the queries did not relate to any ongoing investigation like the probe by the Enforcement Directorate ( ED) into alleged money laundering by investors in Sequoia Capital and WestBridge Capital with regard to investment in Vasan Healthcare in 2009.

Data from Bain & Co India show India received a record $22.4 billion in PE investments in 2015 and $2.3 billion between January and March. LPs are individual and institutional investors who commit capital to a PE fund, which acts as a general partner or GP.

In July 2015, the SIT had proposed a series of measures to curb money laundering and round tripping. Based on these recommendation, the Securities and Exchange Board of India last week stipulated that Indian “know your customer” norms would be applicable to all issuers of offshore derivative instruments including P-notes used by foreign investors to trade in listed securities of Indian companies.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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