SECTION - 9-A - Modification In Conditions Of Special
Taxation Regime For Off Shore Funds Under Section 9a
The existing provisions contain
certain conditions for the eligibility of off-shore funds for which the
activity of fund management carried out through an eligible fund manager shall
not constitute business connection in India.
These conditions are as to residence of Fund, it’s corpus, payment of
remuneration to fund Manager etc. As regards corpus it is also provided that
monthly average of the corpus of the fund shall not be less than Rs. 100 crore
and in the case of newly set up funds, the corpus shall not be less than Rs.
100 Crore at the end of the year.
It is proposed to provide that in
the previous year in which the fund is wound up the conditions that the monthly
average of the corpus shall not be less than Rs. 100 Crore shall not apply.
The amendment will be effective
from 1st April 2016.