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: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: form 3cd :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: empanelment
 
 
General »
 Alarm bells over return of tax inspector raj
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition
 Post demonetisation, Income Tax department sends 30 cases of irregularities to Enforcement Directorate, CBI
 Don’t rush into a new tax without being prepared
 Can’t tax income from palace rent: Supreme Court
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes

Foreign investors push for tax breaks to list Indian REITs
September, 10th 2014

Large FDI providers in real estate have approached the finance ministry seeking tax changes to the current framework for Indian real estate investment trusts (REITs). The recently unveiled structure reduces cash in the hands of shareholders by almost one-fifth compared to a listing in Singapore, they told the government officials in recent meetings.

REITs allow investors to own shares in rent yielding real estate assets that are listed on the bourses. These investment trusts are touted as being potential game changers for the realty and infrastructure sectors, which are facing liquidity pressures.

But the current tax heavy framework could see some of India's largest commercial assets owners like Embassy Office Parks, RMZ Offices and K Raheja Corp veering towards a listing in Singapore.

Global pension funds, sovereign wealth managers and private equity houses like Canadian Investment Pension Plan, Qatar Investment Authority and Blackstone are prolific backers of Indian commercial assets.

India has the potential to list about 170 million sqft of rent-yielding assets through REITs, of the total 370 million sqft of Grade A office stock in the country.

"Unlike countries such as Singapore, UK and US where tax incidence is a major pass through, in India it's a partial pass through. This is a challenging scenario and not a very promising one for investors in India as of now," said Anuj Puri, country head of consultancy firm JLL India.

At constant market multiples, Singapore listed REITs put 19% more cash in the hands of shareholders as compared to an Indian REIT. Puri added that the level of challenge from Singapore would depend on how tax-efficient the Indian REIT structure can become for investors.

Singapore shines on account of a lower tax regime for REITs, which is overall 12.5% less than what the Indian regulator has put in place. Besides the 10% withholding tax, the foreign investors are wary of the 7.5% dividend distribution tax and the 'further income tax' that has been proposed.

The ongoing discussions with the finance ministry officials involves tax free dividend payout and no 'further income tax ' on unit holders.

"Clarifying the tax structure is of high importance at the moment because a successful India REIT market will require strong support from existing landlords and investors," said Anshuman Magazine, CMD of property consultancy CBRE South Asia.

In July, TOI reported that Bangalore-based RMZ Offices was readying for a REIT listing either in Singapore or India, and would eventually pick a market that puts more money in the hands of shareholders.

Deepak Chhabria, MD - finance, RMZ Corp, said, "We are engaged with relevant authorities for clarifications on the recently announced REIT regulations." He didn't wish to elaborate on where the company plans to list its REIT, which is backed by Qatar Investment Authority.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

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