Finance Minister Arun Jaitley presented last week the Union Budget 2017. Along with the macro-economic framework and fiscal policy strategy, the Finance Minister introduced the Finance Bill 2017.
According to the accompanying explanatory memorandum, there are two items that will impact the asset management industry: (i) following industry concerns (see letter from AIMA), the Indian Government has clarified that indirect transfer provisions explained in the CBDT Circular No 41 of 2016 will not apply to any investment held (directly or indirectly) by Foreign Portfolio Investors or Foreign Institutional Investors; and (ii) in relation to the conditions of the special taxation regime for offshore funds under section 9A. some of the requirements for fund eligibility will not have to be meet in the previous year to the fund being wound up. For further information, please contact Paul Hale or Enrique Clemente.