Part DCA - Safe Harbour Rules for income referred to in clause (i) of sub-section (1) of section 9 chargeable to tax under the head (From Rule 10TI to Rule 10TIC)
Eligible investment fund compliance framework governs look-through ownership, arm's length remuneration, and fund manager reporting obligations. Rule 10V sets out the conditions for applying section 9A to an eligible investment fund, including look-through treatment for institutional investors, due diligence for indirect Indian participation, limited grace periods for temporary non-compliance, and the meaning of control or management of a business. It also prescribes transfer pricing treatment and reporting obligations for remuneration paid to an eligible fund manager, together with formula-based methods for computing that remuneration and a mechanism for seeking approval of a lower amount. The rule further clarifies that a fund manager is not a connected person merely because it manages the fund, and that certain fixed charges are excluded from profit-linked computation if the section 9A conditions are met.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Eligible investment fund compliance framework governs look-through ownership, arm's length remuneration, and fund manager reporting obligations.
Rule 10V sets out the conditions for applying section 9A to an eligible investment fund, including look-through treatment for institutional investors, due diligence for indirect Indian participation, limited grace periods for temporary non-compliance, and the meaning of control or management of a business. It also prescribes transfer pricing treatment and reporting obligations for remuneration paid to an eligible fund manager, together with formula-based methods for computing that remuneration and a mechanism for seeking approval of a lower amount. The rule further clarifies that a fund manager is not a connected person merely because it manages the fund, and that certain fixed charges are excluded from profit-linked computation if the section 9A conditions are met.
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