TMI BlogIncome-tax (5th Amendment) Rules, 2016) - Rules in respect of offshore fund manager regime under section 9A of the Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... looking through the said entity, if it, - (a) independently satisfies the conditions mentioned in clauses (c), (e), (f) and (g) of sub-section (3) of section 9A ; (b) has been setup solely for the purpose of pooling funds and investment thereof; and (c) is resident of a country or specified territory with which an agreement referred to in sub-section (1) of section 90 or sub-section (1) of section 90A has been entered into. (2) For the purposes of clause (c) of sub-section (3) of section 9A , where direct investor in the fund is a person other than a natural person, the fund shall undertake appropriate due diligence to ascertain the indirect participation, if any, of a person resident in India and the extent thereof: Provided that where such direct investor is, the Government or the Central bank or a sovereign fund or a multilateral agency or appropriately regulated investor in the form of pension fund or University fund or a bank or collective investment vehicles such as mutual funds, the fund shall obtain a declaration in writing from the direct investor regarding the participation, if any, of a person resident in India and the indirect participation in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fund manager are associated enterprises. (6) The fund manager shall keep and maintain information and documents as required under section 92D and the rules made thereunder. (7) The fund manager shall, in addition to any report required to be furnished by it under section 92E , obtain a report from the accountant in respect of activity undertaken for the fund and furnish such report on or before the specified date in the Form No. 3CEJ duly verified by such accountant in the manner indicated therein and all the provisions of the Act shall apply as if it is a report to be furnished under section 92E. Explanation .- For the purposes of this sub-rule specified date shall have the same meaning as assigned to due date in the Explanation 2 below sub-section (1) of section 139. (8) Where the fund manager has either not maintained the document or information as required under section 92D and the rules made thereunder or not produced the document or information before the Assessing Officer or the Transfer Pricing Officer, as the case may be, then, the Assessing Officer or the Transfer Pricing Officer, as the case may be, shall, before determining the arm s lengt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, shall, within sixty days from the end of the month in which the application under sub-rule (2) has been made,- (i) by an order in writing, grant approval to the fund subject to such conditions as it may deem fit; or (ii) for reasons to be recorded in writing, reject the application. (8) The approval once granted, subject to any condition specified in this behalf, shall be applicable for the previous year referred to in sub-rule(3) and subsequent previous years unless it is withdrawn by the Board. (9) The benefit of section 9A shall not be denied to an eligible investment fund, which has been granted approval, for any previous year for which the approval is in force and has not been withdrawn. (10) The Board may withdraw the approval granted to any fund, if it is satisfied that, - (a) the approval has been obtained on the basis of misrepresentation of facts or fraud ;or (b) the conditions mentioned in section 9A are not fulfilled; or (c) any condition subject to which approval was granted, has been violated. (11) No order rejecting the application or withdrawing the approval, shall be passed without giving an opportunity of being heard. (12) A co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars given in the Annexure are true and correct. **Signed Name Address: Membership No.: Place : Date : Notes : 1. *Delete whichever is not applicable. 2. **This report has to be signed by an accountant as defined in the Explanation below sub-section (2) of section 288. ANNEXURE TO FORM No. 3CEJ Particulars relating to fund management activity required to be furnished for the purposes of section 9A of the Income-tax Act, 1961 1. Name of the Fund Manager 2. Address 3. Permanent account number 4. Nature of business or activities of the fund manager 5. Status 6. Residential status 7. Details of SEBI registration (a) Regulation under which registered (b) Registration number and date 8. Previous year ended 9. Assessment year 10. Aggregate value of remuneration received from the eligible fund/funds as per books of account 11. List of eligible investment funds for whom the fund manager has undertaken the fund management activity , with the following details : (a) Name of the offshore fund. (b) Country of residence of the fund (c) Whether the fund manager is an employee of the fund Yes/No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Address of the fund 4 Permanent Account Number (if Allotted) 5 Country of Residence 5 Tax Identification No., if any, of country of residence 6 Accounting year of the Fund 7 Details of Approval if any granted by CBDT 8 Whether during the Financial Year the fund has satisfied all the conditions specified in section 9A and in case of Approved Fund whether conditions subject to which approval was granted, have also been fulfilled. YES/NO 9 If answer to 8 is No then provide details and period of non fulfilment and the reasons thereof 10 Whether any person resident in India had any participation interest directly or indirectly in the fund during the year? Yes/NO 11 If answer to 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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