Section – 9 – income deemed
to accrue or arise in india - Clarity relating to
Indirect transfer provisions
According to the existing
provisions contained in Explanation 5 under section 9(1)(i), an asset or capital
asset being any shares or interest in company or any share or interest in a
company or any entity registered or incorporated outside India shall be deemed
to be situated in India if the shares or interest derives directly or indirectly its value substantially
from the assets located in India.
It is proposed to provide that
the said explanation 5 shall not apply to any asset or capital asset mentioned
therein being investment held by the non-resident directly or indirectly in a
specified foreign Institutional Investor registered as Foreign Portfolio investor
under the SEBI Regulations.
The amendment will be effective
from 1st April 2018.