-> Asset management companies (AMCs) can now graduate from being mere ‘advisors’ to offshore funds to becoming a direct, “full fledged manager” of such funds from India.
-> Central Board of Direct Taxes (CBDT) removed a taxation-related constraint that prevented Indian AMCs from taking up direct fund management activity of offshore funds.
-> CBDT has clarified that SEBI-approved asset management companies will be designated as ‘eligible fund manager’ and therefore entitled for benefits under Section 9A of the income tax law
-> fund management activities carried for offshore funds by such AMCs would not be regarded as having a ‘business connection’ and would not result in a taxable presence of such offshore funds in India.
-> if the overseas fund is managed by AMCs from India there will be no adverse tax consequences for the overseas funds here. Hence, their global incomes will not be subjected to tax in India.
