10:31 AM
Unknown
I ,Dont understand if this was the clarification FM has to give….then why after so many Days ??
We Don’t Understand…Why Nifty Future was Trading with PREMIUM of 50 points (Yesterday -April series )I Don’t understand………….Why we Indian are so Thirsty for Fii’s Money ?Our Market moves on Economy or Fundamentals or Fii’s Money or By looking at World Market Trend or on what basis ??? We Follow Charts ………and they are 100% Correct.Apart from that everything looks Manipulative !!
Clarifying that the intention of the government was not to cause any harassment to genuine investors, Finance Minister Pranab Mukherjee on Friday said that the question of tax liability forParticipatory note (P-note) holders does not arise. Commenting on speculation of Foreign Institutional Investors ( FIIs) about provisions of the Finance Bill and retrospective amendments in section 9, Mukherjee sought to allay fears of investors.
“The Indian tax authorities will examine the tax liability of the said investors. However the Indian tax authorities would not go beyond the financial institutional investors to check any further details about the participatory note holders,” he said. Stating that a clarification on the same would be issued in due course he reiterated that the question of liability for tax in India of the participatory note holders would not arise.
A new set of tax norms, the General Anti-Avoidance Rules ( GAAR) comes into effect from next week (April 1, 2012. Under this, the income tax department will have the power to deny individuals and entities the benefits of any tax avoidance treaty that may presently exist. P-notes are fundamentally instruments that help foreign investors preserve their anonymity since they don’t have to register with the market regulator Sebi. It also presents them with a great opportunity to save tax by routing the investments through tax havens like Mauritius.
If the IT department were to actually go after P-notes, there would be tax implication on these instruments which are mainly sold by the likes of investment banks like Goldman Sachs, Citi, Barclays, HSBC and Morgan Stanley among others.