TMI BlogInsertion of new section 9A - Certain activities not to constitute business connection in India.X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness connection in India of the said fund. (2) Notwithstanding anything contained in section 6, an eligible investment fund shall not be said to be resident in India for the purpose of that section merely because the eligible fund manager, undertaking fund management activities on its behalf, is situated in India. (3) The eligible investment fund referred to in sub-section (1), means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely:- (a) the fund is not a person resident in India; (b) the fund is a resident of a country or a specified territory with which an agreeme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indirectly, any business in India or from India; (l) the fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities undertaken by the eligible fund manager on its behalf; (m) the remuneration paid by the fund to an eligible fund manager in respect of fund management activity undertaken by him on its behalf is not less than the arm s length price of the said activity. (4) The eligible fund manager, in respect of an eligible investment fund, means any person who is engaged in the activity of fund management and fulfils the following conditions, namely:- (a) t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section,- (a) associate means an entity in which a director or a trustee or a partner or a member or a fund manager of the investment fund or a director or a trustee or a partner or a member of the fund manager of such fund, holds, either individually or collectively, share or interest, being more than fifteen per cent. of its share capital or interest, as the case may be; (b) corpus means the total amount of funds raised for the purpose of investment by the eligible investment fund as on a particular date; (c) connected person shall have the meaning assigned to it in clause (4) of section 102; (d) entity means any entity in which an eligible investment fund makes an investment; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or investing it for their benefit and certain conditions specified in the said sub-section. Sub-section (4) of the proposed new section seeks to provide that the eligible fund manager in respect of an eligible investment fund shall mean any person who is engaged in the activity of fund management and fulfil certain conditions specified in the said subsection. Sub-section (5) of the proposed new section seeks to provide that every eligible investment fund shall furnish a statement in respect of its activities during a financial year in the prescribed form, to the prescribed income-tax authority within ninety days from the end of the financial year. Sub-section (6) of the proposed new section seeks to provide that no such income shal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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