Clarification on Indirect Transfer provision under the Income Tax Act, 1961
Circular No. 41/2016
was issued on 21 December, 2016 which dealt with clarification on Indirect
Transfer provisions. After the issue of the aforementioned circular,
representations have been received from various FPIs, FIIs, VCFs and other
stakeholders. The stakeholders have presented their concerns stating that the
circular does not address the issue of possible multiple taxation of the same
income. The representations made by the stakeholders are currently under
consideration and examination. Pending a decision in the matter, the operation
of the above mentioned circular is kept in abeyance for the time being.
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