TaxTMI 
TaxTMI 
Question- What are the proposed regime in Finance Bill 2015 to facilitate location of fund managers of off-shore funds in India ?
Fund Managers in India not to constitue business connection of offshore funds
28 Feb 2015 
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Business connection carve-out for offshore funds: eligible fund manager activity in India will not make the fund taxable here.
The proposed regime provides that fund management performed in India by an eligible fund manager for an eligible investment fund shall not constitute a business connection of the fund nor render the fund resident in India solely on that basis, subject to detailed qualifying conditions for the fund and the manager, arm's length remuneration, annual prescribed filings evidencing compliance, and a monetary penalty for non-filing; the regime does not alter taxability of income otherwise chargeable in India or the fund manager's income determination. (AI Summary)
The proposed regime provides that fund management performed in India by an eligible fund manager for an eligible investment fund shall not constitute a business connection of the fund nor render the fund resident in India solely on that basis, subject to detailed qualifying conditions for the fund and the manager, arm's length remuneration, annual prescribed filings evidencing compliance, and a monetary penalty for non-filing; the regime does not alter taxability of income otherwise chargeable in India or the fund manager's income determination. (AI Summary)