Insertion of new section 9A - Certain activities not to constitute business connection in India.

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....onstitute business connection in India of the said fund.  (2) Notwithstanding anything contained in section 6, an eligible investment fund shall not be said to be resident in India for the purpose of that section merely because the eligible fund manager, undertaking fund management activities on its behalf, is situated in India.        (3) The eligible investment fund referred to in sub-section (1), means a fund established or incorporated or registered outside India, which collects funds from its members for investing it for their benefit and fulfils the following conditions, namely:-            (a) the fund is not a person resident in India; &....

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....sociate entity;       (j) the monthly average of the corpus of the fund shall not be less than one hundred crore rupees: Provided that if the fund has been established or incorporated in the previous year, the corpus of fund shall not be less than one hundred crore rupees at the end of such previous year;        (k) the fund shall not carry on or control and manage, directly or indirectly, any business in India or from India;       (l) the fund is neither engaged in any activity which constitutes a business connection in India nor has any person acting on its behalf whose activities constitute a business connection in India other than the activities und....

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....lfilment of the conditions specified in this section and also provide such other relevant information or documents as may be prescribed. (6) Nothing contained in this section shall apply to exclude any income from the total income of the eligible investment fund, which would have been so included irrespective of whether the activity of the eligible fund manager constituted the business connection in India of such fund or not. (7) Nothing contained in this section shall have any effect on the scope of total income or determination of total income in the case of the eligible fund manager. (8) For the purposes of this section,-            (a) "associate" means an entity in which a d....

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.... arise in India, directly or indirectly, and is taxable in India. Sub-section (1) of the proposed new section 9A seeks to provide that in the case of an eligible investment fund, any fund management activity carried through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India of the said fund. Sub-section (2) of the proposed new section seeks to provide that an eligible investment fund shall not be said to be resident for the purposes of section 6, merely because the eligible fund manager undertaking fund management activities on its behalf, is situated in India. Sub-section (3) of the proposed new section seeks to provide that the eligible investment fund shall mean a fund, estab....