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Guidelines for application of section 9A

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..... 1) of section 90A has been entered into 2[ or is established or incorporated or registered in a country or a specified territory notified by the Central Government in this behalf ]. (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 .....

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..... statement referred to in sub-section (5) of section 9A and such delay does not exceed a period of ninety days. (4) For the purposes of clause (k) of sub-section (3) of section 9A , a fund shall be said to be controlling or managing a business carried out by any entity, if the fund directly or indirectly holds such rights in, or in relation to, the entity, which results in the fund holding the share capital or a voting power or an interest exceeding twenty six per cent. of the total share capital of, or as the case may be, total voting power or total interest in, the entity. (5) Subject to the provisions of sub- rules (6), (7) and (8), for the purposes of determining the arm s length price in respect of any remuneration, paid by the .....

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..... , shall, before determining the arm s length price for the purposes of clause (m) of sub-section (3) of section 9A , provide an opportunity to the fund to produce the information and documents necessary for the determination of the arm s length price and the arm s length price shall be determined after considering the documents or information, if any, provided by the fund. (9) If in any previous year, it is determined that the remuneration paid or payable by a fund to the fund manager is not in accordance with the provisions of clause (m) of sub-section (3) of section 9A , then the benefits of section 9A shall not be denied to the fund which otherwise satisfies all other conditions specified in section 9A. (10) Nothing contained .....

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..... the income or profits derived by the fund from the management activity undertaken by the fund manager, paid by such fund in respect of the fund management activity undertaken by the fund manager as reduced by the amount incurred towards operational expenses including distribution expenses, if any: Provided that the provisions of this sub-clause shall apply only in case the fund is also making payment of management fee to any other fund manager : Provided further that in case where the amount of remuneration is lower than the amount arrived at under clause (i) or clause (ii), the fund may, at its option, apply to the Member, Central Board of Direct Taxes referred to in sub-rule (2) of rule 10VA seeking approval of the Board under s .....

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..... f activity undertaken for the fund and furnish such report on or before the specified date in the Form No. 3CEJA 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. ] 3 [ 5 [ (14) ] For the purposes of clause (a) of sub-section (4) of section 9A , a fund manager shall not be considered to be a connected person of the fund merely for the reason that the fund manager is undertaking fund management activity of the said fund. 5 [ (15) ] For the purposes of clause (d) of sub-section (4) of section 9A , any remuneration paid to the fund manager, by the fund, which is in the nature of fixed charge and not dependent on t .....

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