TaxTMI 
TaxTMI 
International Financial Services Centres Authority (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024
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....ations aim to put in place the regulatory framework relating to development, registration and operations of Book-keeping, Accounting, Taxation and Financial Crime Compliance Services from International Financial Services Centres. 3. Definitions (1) In these regulations, unless the context otherwise requires, the terms defined herein shall bear the meanings as assigned to them herein below - (a) "Act" means the International Financial Services Centres Authority Act, 2019 (50 of 2019); (b) "accounting services" includes:- (i) reviewing annual and interim financial statements or other accounting information without any attestation or assurance thereof; (ii) compilation of financial statements from information provided by the client, without giving any attestation or assurances regarding the accuracy of the resulting statements; (iii) preparation of financial statements; (iv) compilation of income statements, balance sheets or other financial information; (v) analysis of financial statements; (vi) other related accounting support services in relation to any of the above including valuation support services. ....
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....Act; (j) "Non-resident" means a person resident outside India under the Foreign Exchange Management Act, 1999 (42 of 1999) and shall also include units in International Financial Service Centre; (k) "BATF Services" shall, for the purpose of these regulations, collectively mean book-keeping, accounting, taxation and financial crime compliance services; (l) "Specified Foreign Currency" means the currencies specified in the First Schedule of the International Financial Services Centres Authority (Banking) Regulations, 2020 or any other regulation issued by the Authority; (m) "taxation services" means services of tax consultation, tax preparation or tax planning and includes providing advice and guidance concerning taxes as well as preparing and filing of tax returns of all kinds; Explanation - For the purpose of this clause 'Taxes' shall include all forms of direct or indirect taxes, cesses, duties or levies. (2) Words and expressions used and not defined in these regulations but defined in the Act or Acts mentioned in the First Schedule to the Act or Companies Act, 2013 (18 of 2013) or Limited Liability Partnership Act 2008 (6 of 2009) ....
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....advising it to rectify those within thirty (30) days from the date of communication, failing which the application is liable to be rejected. Provided that no application shall be rejected without giving the applicant a reasonable opportunity to make written submissions. (3) The certificate of registration granted to BATF Service Provider under this regulation shall be valid unless cancelled by the Authority, or surrendered by the BATF Service Provider, in accordance with these regulations. Provided that the surrender of certificate of registration by the BATF Service Provider shall be effective only after approval by the Authority. (4) The BATF Service Provider shall keep the Authority informed of any material change in the information or particulars previously furnished. CHAPTER III FIT AND PROPER REQUIREMENTS 7. Fit and Proper Requirements (1) The BATF Service Provider shall ensure that the entity and its principal officer, directors/ partners/ designated partners, key managerial personnel and controlling shareholders are fit and proper persons, at all times. (2) For the purpose of sub-regulation (1), a person shall be deemed to be a fit and proper pers....
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.... of this regulation, the interpretation of "transferring or receiving of existing contracts or work arrangements from their group entities in India" shall be as per Part-B of First Schedule. CHAPTER V SERVICE RECIPIENT 10. Service Recipient The BATF Service Provider shall ensure that the service recipient is a non-resident and is not from a jurisdiction which has been identified in the public statement of Financial Action Task Force as "High Risk Jurisdiction- subject to call for action". CHAPTER VI KEY MANAGERIAL PERSONNEL 11. Appointment of Principal Officer and Compliance Officer (1) The BATF Service Provider shall designate a Principal Officer who shall be responsible for its overall activities in IFSC. (2) In addition to the above, the BATF Service Provider shall also designate a Compliance Officer who shall be responsible for reporting to the Board of Directors or head of the organization, as the case maybe, besides the compliance of policies, procedures, maintenance of records and the implementation of the requirements as specified under these regulations and other applicable laws in force. (3) The BATF Service Provider shall ensure that its Pri....
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....Year. 15. Power to relax strict enforcement of the regulations (1) The Authority, for reasons to be recorded in writing, may in the interest of development of financial market in IFSC, relax the strict enforcement of any requirements of these regulations. (2) For seeking relaxation under sub-regulation (1), an application giving details and the grounds on which such relaxation has been sought, shall be filed with the Authority along with a non-refundable fee as may be specified by the Authority. (3) The Authority shall process such application within sixty (60) days of the date of receipt of the application, complete in all respects, including responses to clarifications sought and shall record reasons for acceptance or refusal of the relaxations sought by the applicant. 16. Power to specify norms, procedures, issue clarifications and remove difficulties (1) For the purposes of implementation of these regulations and matters incidental thereto, the Authority may specify norms, procedures, processes, additional requirements, etc. by way of circulars or guidelines or directions. (2) In order to remove any difficulties in the interpretation or application of the p....
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....dia to the BATF Service Provider. PART-B (Refer Regulation 9) 2. Contracts or work arrangement between a BATF Service Provider with its service recipients shall be construed as "transferring or receiving of existing contracts or work arrangements from their group entities in India", in the following scenarios:- (a) Transferring of existing contracts or work arrangements in India: When an existing contract or work arrangement, by whatever name called, between any of the Group Entities of BATF Service Provider in India with its non-resident client is shifted or transferred to the BATF Service Provider during the subsistence of such contract or work arrangement. (b) Termination of existing contracts or work arrangements in India: When an existing contract or work arrangement, by whatever name called, between any of the Group Entities of the BATF Service Provider in India with its non-resident client is prematurely terminated and a new contract or a work arrangement is signed between the BATF Service Provider with the same service recipient, directly or indirectly. (c) Other scenarios, as may be specified by the Authority, from time to time. SECON....