Offshore funds: CBDT open to relook at ‘Budget conditions
NEW DELHI, MARCH 3:
The Central Board of Direct Taxes (CBDT) is open to “re-look” at the conditions placed in this year’s Budget for encouraging fund managers of offshore funds to relocate to India, a top official said.
“In our view the conditions are not onerous. But if you (fund management industry) feel they are, then we are open to suggestions around them (conditions),” Anita Kapur, Chairperson, CBDT, said at a post-Budget meeting, organised by the Confederation of Indian Industry here on Tuesday.
Fund management industry reckons that the 13 conditions specified in the latest Budget as “onerous” and “not practical”.
The Budget has said that these 13 conditions should be met if the offshore fund or its fund managers located in India are not to be visited with adverse tax consequences.
Fearing of adverse tax consequences, large fund managers of Indian origin are managing the investment of offshore funds in various countries.
To facilitate location of fund managers of offshore funds in India, the Budget has come up with a specific regime in the income tax law in line with international best practices.
However, certain conditions (13 in number) have been specified, which the fund management industry considers as “onerous”.
The CBDT chief’s assurance to “relook” the conditions could spell music to the ears of fund management industry. This comes on the heels of Budget move bringing more clarity to the tax provisions around “indirect transfer” of shares.
