Mumbai Pune Hyderabad New Delhi

NATIONAL CONFERENCE ON NATIONAL CONFERENCE ON QUALIFIED FOREIGN INVESTORSQUALIFIED FOREIGN INVESTORS

PAN

QFIs – QFIs – Various Tax Various Tax

IssuesIssues

Cost of compliance

Role of QDPs

TDS

RETURN OF INCOME

ADVANCE TAX

QFIs – PAN QFIs – PAN

• Psychological barrier• Probing details asked for in 49AA• Address in India?• Representative Assessee

QFIs – TDS Related IssuesQFIs – TDS Related Issues

• Whether TDS is mandatory or not?• Will a QDP become a Representative Assessee

of the QFI?• Should a QDP allow treaty benefits while

computing TDS?• Can losses be set off while computing TDS?• If not, unnecessary situation of claim of refund

will arise• FIIs are exempt from TDS provisions. Why not

QFIs?• What about GAAR? How does a QDP decide?

QFIs – Advance TaxQFIs – Advance Tax

• Whether there will be any need to pay advance tax?

• If yes, who will take responsibility for the same?

QFIs – Return of IncomeQFIs – Return of Income

• Whether there is a need to file the Return of Income in India?

• If the income is exempt, is there a need to file the Return? (Refer to AAR Ruling in case of an FII)

• If there is no income, is there a need to file the Return?

• What about PAN encrypted DSC for e-signing of Return?

QFIs – Role of QDPsQFIs – Role of QDPs

• Are QDPs the Representative Assessees of QFIs in India?

• Are QDPs equipped to take responsibility for tax compliances?

• If they avail of services of CAs, then what would be the role and responsibility of each party?

• Is the QFI appointing the QDP for tax services or the CA?

• Even if there is a tripartite agreement between all three, what are the roles and responsibilities?

QFIs – Costs of Tax ComplianceQFIs – Costs of Tax Compliance

• Tax Risks are very high in India

• Cost of compliance and litigation is also very high

• For retail individual investors, will the cost of tax compliance be commensurate with the return on investment?

QFIs- When will they actually arrive?QFIs- When will they actually arrive?

• Unless QDPs start operations, investors cannot invest

• Once there is more clarity on the role and responsibility of QDPs, they will start operations.

• QDPs will hesitate to start operations till the tax related doubts are not cleared by the Govt.

Thank you!!Thank you!!

ContactAmeet Patel Partner – Sudit K Parekh & Co.

2nd Floor, Ballard House, Adi Marzban Street, Ballard Estate, Mumbai – 400 001, India

Phone # +91 22 66178000Fax # +91 22 66178002

Email: ameet.patel@skparekh.com

www.suditkparekh.com

This presentation is solely for information and private circulation and is not intended to provide any advice or opinion to anyone