TMI BlogInsertion of new section 9A- Certain activities not to constitute business connection in IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... dia 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 agreement referred to in sub-section (1) of section 90 or sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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: Provided that the conditions specified in clauses (e), (f) and (g) shall not apply in case of an investment fund set up by the Government or the Central Bank of a foreign State or a sovereign fund, or such other fund as the Central Government may subject to conditions if any, by notification in the Official Gazette, specify in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontained in this section shall have any effect on the scope of total income or determination of total income in the case of the eligible fund manager. (8) The provisions of this section shall be applied in accordance with such guidelines and in such manner as the Board may prescribe in this behalf. . (9) For the purposes of this 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) connected person shall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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