Clarity on eligibility criteria for funds set up by Category I FPIs for exemption from taxable presence in India

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Clarity on eligibility criteria for funds set up by Category I FPIs for exemption from taxable presence in India

By Daksha Baxi & Surajkumar Shetty

July 10, 2020

Background A special taxation regime, provided under Section 9A of the Income-tax Act, 1961 (“IT Act”), exempts eligible offshore funds, with their fund managers located in India, from treating them as having taxable business presence in India. On satisfaction of the requirements set out in Section 9A of the IT Act, management of the funds through such Indian fund managers would not constitute the offshore fund’s ‘business connection’ in India. It is important to note…

Women and Maintenance

By Aditya Mehta, Manasvi Nandu & Tanya Singh

July 9, 2020

law concept, lawyer woman hoding pen with contract or agreement document to customer for signing in courtroom legal.

Maintenance, as a concept, has its roots in the social justice system of a civilised society. The Supreme Court, explaining the rationale behind providing maintenance in the case of Badshah v. Urmila Badshah Godse and Anr[1], has held that the “provision of maintenance…aims at empowering the destitute and achieving social justice or equality and dignity of the individual. …The law regulates relationships between people. It reflects the values of society.” In India, the…

‘In terrorem clause’ is used to reduce chances of challenge to a Will

By Rishabh Shroff & Varsha Reddy

July 9, 2020

The Private Client team at Cyril Amarchand Mangaldas shares their comments and opinions shared in an article in the following Q&A which was published by the Mint Newspaper on 7th July, 2020 and the online edition of the same can be found here. I live in the US. I have made a Trust deed before a notary in Texas, with my children as beneficiaries. The deed has a foregoing clause, which says claims filed…

CBDT NOTIFIES RELAXATION IN FAIR VALUATION NORMS- ARE THEY ENOUGH?

By S.R. Patnaik, Kunal Savani & Bipluv Jhingan

July 8, 2020

Income-tax Act, 1961 (“IT Act”) provides for certain anti-avoidance provisions, like Section 56(2)(x) and Section 50CA, which seek to impose tax on certain assets, that were received or transferred for an inadequate consideration. Section 56(2)(x) of the IT Act stipulates that where certain assets, including shares and securities are received for a value which is less than their fair market value (“FMV”), then the difference between the FMV and actual consideration paid would be…

Housing Finance Companies – Proposed changes by RBI

By Leena Chacko & Shweta Sharma

July 8, 2020

The Central Government had, with effect from August 09, 2019, transferred regulatory powers of the Housing Finance Companies (“HFCs”) from the National Housing Bank (“NHB”) to the Reserve Bank of India (“RBI”). It is further stated that the RBI will review the extant of regulatory framework applicable to HFCs and issue the same in due course. Until such time, HFCs were required to comply with the directions and instructions issued by NHB.[1] Pursuant…

Arbitrator’s power to recall its order of termination of arbitral proceeding- A tale of Dubiety? (Part II)

By Aditya Mehta, Manasvi Nandu & Sameer Bindra

July 7, 2020

In Part I of this post, we inter-alia attempted to highlight the law (and perhaps a relevant counter perspective) in relation to the power of the arbitrator to recall its order of termination of arbitral proceedings passed under Section 25(a) of the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the “Act”). In this post, we attempt to answer whether such a remedy would extend to termination of arbitral proceedings under Section 32(2)(c) of…

Provenance in the Art Market – Is Blockchain the Way Forward?

By Manisha Kumar & Kunal Gopal

July 6, 2020

Provenance, simply put, means the history of the whereabouts of an artwork from the day it was created by the artist to the present. While provenance is generally intended to be a ‘chain of title’ that includes every owner of the work since its creation, in practice, it typically tends to merely include a listing of some interesting facts concerning the background of the work, such as notable former owners and exhibition of the work…

Trust is Trustworthy, not a Device to Evade Tax: ITAT Delhi

By Daksha Baxi, Kunal Savani & Meenakshi Ramkumar

July 3, 2020

In its recent ruling[1], the Income Tax Appellate Tribunal Bench at Delhi (ITAT) has reiterated the well-established principles, including (i) validity of Trusts; (iii) use of Trusts to hold treasury shares[2]; and (iii) the taxation of its income as a representative of the beneficiary/beneficiaries under the provisions of sections 160-166 of the Income-Tax Act, 1961 (IT Act). The ITAT further upheld the principle that trustees are to be assessed as ‘representative…

Arbitrator’s power to recall its order of termination of arbitral proceeding- A tale of Dubiety? (Part I)

By Aditya Mehta, Manasvi Nandu & Sameer Bindra

July 2, 2020

Introduction: This article analyses the legal basis and the genesis of the power of an arbitrator to recall its order of termination of proceeding on account of default of the Claimant. India seated arbitral proceedings, whether ad-hoc or institutional, are governed by the Arbitration and Conciliation Act, 1996 (hereinafter referred to as the Act), which is based on the UNCITRAL Model Law on International Commercial Arbitration, 1985 (UNCITRAL Model Law). Whilst arbitrators are not bound…