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: empanelment :: VAT RATES :: ACCOUNTING STANDARD :: form 3cd :: due date for vat payment :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ACCOUNTING STANDARDS :: TDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4%
 
 
Direct Tax »
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal

FinMin asks CBDT to clarify taxes on offshore fund managers
September, 19th 2013

In what could result in a huge relief for the Indian fund industry, the finance ministry has nudged the CBDT (Central Board of Direct Taxes) to issue a clarification on the taxation of fund managers of an offshore fund. The ministry believes that fund managers managing offshore funds are being driven out of India to Singapore due to adverse tax provisions, reports CNBC-TV18’s Payaswini Upadhyay.

In a letter dated September 9, the finance ministry had directed the CBDT to clarify that simply because a fund manager of an offshore fund is located in India; it would not constitute a business connection. Also read: Tide has turned, EM ETFs seeing good inflows: Morningstar The concept becomes important because once a business connection is constituted; the Indian fund becomes a permanent establishment liable to be taxed at 40 percent.

Nishchal Joshipura, head - funds practice, Nishith Desai Associates says, “Currently, the way the funds have been operating is that they have an Indian advisory company, which makes non-binding recommendations on the investment and divestment to the offshore fund management entity. In turn, it makes recommendations to the fund.

The board of the fund ultimately takes a decision on whether to invest or divest from India. The issue which comes up as on the ground presence is required, especially in case of private equity funds. A lot of ground work is needed and the core team usually sits in India.” Several countries including the United Kingdom, Singapore, Hong Kong, United States, and New Zealand provide for a safe harbour to prevent offshore funds from having a taxable presence in their respective jurisdictions.

The industry is expecting a similar clarity from the CBDT. “I would like to see clarity on the list of activities which a fund manager can do- as long as the fund manager is doing 10 activities, the tax authorities should not be going into whether those activities could still constitute permanent establishment”, adds Joshipura In India, the offshore funds face the risk of high tax rate and consequently lower returns, which make it a less attractive destination for pooling capital. The expected clarification from the CBDT will address this concern and may be bring the fund managers back home.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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