Rules in respect of Fund Manager Regime under Section 9A of the Income-tax Act, 1961
Rules in respect of Fund Manager Regime under Section 9A of the Income-tax
Act, 1961
Section 9A of the Income-tax Act, 1961 (the Act) provides for special taxation
regime with effect from 01.04.2016 to facilitate location of fund managers of
off shore funds in India. Under this regime, the fund management activity
carried-out through an eligible fund manager in India by an eligible investment
fund does not constitute business connection in India of the fund and also does
not lead to the residence of the fund in India.
The Rules for operationalisation of the provisions of section 9A of the Act
have been inserted in the Income-tax Rules, 1961 (the Rules) vide Notification
No. SO 1101(E) dated 15.03.2016. These rules, inter alia, provide
for:
· A pre-approval mechanism under which a fund can seek approval at its option
from CBDT and once approved, benefit of section 9A would not be denied unless
approval is withdrawn under limited circumstances.
· Determination of number of members and the participation interest in the
fund by looking through the entity where the investment in the fund has been
made directly by an institutional entity.
· Relaxation from investor diversification condition in the period of
eighteen months or final closing of the fund whichever is earlier, in setting
up phase of the fund and in one year period in the winding up phase of the
fund.
· Eligibility of the fund will not be impacted in case of temporary
non-fulfilment of investor diversification conditions for period up to 90 days.
· Eligibility of the fund will not be impacted in case of any delay in
furnishing the statement of activity, if delay does not exceed a period
of ninety days.
· A fund shall be said to be controlling or managing a business carried out
by any entity, if the fund directly or indirectly holds twenty six percent of
voting right.
· The eligibility of the fund will be impacted only if the remuneration paid
or payable by the fund to the fund manager has been determined to be not at
arm’s length price for a period of three previous years in succession; or for
any three out of the preceding four previous years. A chance transfer pricing
adjustment will not impact the eligibility.
Notification No.
SO 1101(E) dated 15.03.2016 is available on the website of the Income Tax
Department:www.incometaxindia.gov.in.
*****
Change in Tariff value of Crude Palm Oil, RBD Palm Oil, Others – Palm Oil,
Crude Palmolein, RBD Palmolein, Others – Palmolein, Crude Soyabean Oil, Brass
Scrap (All Grades), Poppy Seeds, Areca Nuts, Gold And Silver Notified
In exercise of the
powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52
of 1962), the Central Board of Excise & Customs, being satisfied that it is
necessary and expedient so to do, hereby makes the following amendment in the
notification of the Government of India in the Ministry of Finance (Department
of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August,
2001, published in the Gazette of India, Extraordinary, Part-II, Section-3,
Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August,
2001, namely:-
In the said
notification, for TABLE-1, TABLE-2, and TABLE-3 the following
Tables shall be substituted namely:-
TABLE-1
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description
of goods
|
Tariff
value
(US $ Per
Metric Tonne)
|
(1)
|
(2)
|
(3)
|
(4)
|
1
|
1511 10 00
|
Crude Palm
Oil
|
652
|
2
|
1511 90 10
|
RBD Palm
Oil
|
659
|
3
|
1511 90 90
|
Others –
Palm Oil
|
656
|
4
|
1511 10 00
|
Crude
Palmolein
|
662
|
5
|
1511 90 20
|
RBD
Palmolein
|
665
|
6
|
1511 90 90
|
Others –
Palmolein
|
664
|
7
|
1507 10 00
|
Crude Soya
bean Oil
|
740
|
8
|
7404 00 22
|
Brass
Scrap (all grades)
|
2957
|
9
|
1207 91 00
|
Poppy
seeds
|
2464
|
TABLE-2
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description
of goods
|
Tariff
value
(US $)
|
(1)
|
(2)
|
(3)
|
(4)
|
1
|
71 or 98
|
Gold, in
any form, in respect of which the benefit of entries at serial number 321 and
323 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed
|
404 per 10
grams
|
2
|
71 or 98
|
Silver, in
any form, in respect of which the benefit of entries at serial number 322 and
324 of the Notification No. 12/2012-Customs dated 17.03.2012 is availed
|
509 per
kilogram
|
TABLE-3
Sl. No.
|
Chapter/
heading/ sub-heading/tariff item
|
Description
of goods
|
Tariff
value
(US $ Per
Metric Tonne )
|
(1)
|
(2)
|
(3)
|
(4)
|
1
|
080280
|
Areca nuts
|
2599
|
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