This is a brief presentation made by me at the National Conference on QFIs arranged by Assocham at Delhi on 5th July, 2012. It brings out the various tax related issues that a Qualified Foreign Investor is likely to face on the basis of the law as it stands today.

1. NATIONAL CONFERENCE ON
QUALIFIED FOREIGN
INVESTORS
Mumbai  Pune  Hyderabad  New Delhi

2. PAN
TDS
Cost of
compliance QFIs –
Various Tax
Issues
ADVANCE TAX
Role of QDPs
RETURN OF
INCOME

3. QFIs – PAN
• Psychological barrier
• Probing details asked for in 49AA
• Address in India?
• Representative Assessee

4. QFIs – TDS Related Issues
• Whether TDS is mandatory or not?
• Will a QDP become a Representative Assessee
of the QFI?
• Should a QDP allow treaty benefits while
computing TDS?
• Can losses be set off while computing TDS?
• If not, unnecessary situation of claim of refund
will arise
• FIIs are exempt from TDS provisions. Why not
QFIs?
• What about GAAR? How does a QDP decide?

5. QFIs – Advance Tax
• Whether there will be any need to pay advance
tax?
• If yes, who will take responsibility for the
same?

6. QFIs – Return of Income
• Whether there is a need to file the Return of
Income in India?
• If the income is exempt, is there a need to file the
Return? (Refer to AAR Ruling in case of an FII)
• If there is no income, is there a need to file the
Return?
• What about PAN encrypted DSC for e-signing of
Return?

7. QFIs – Role of QDPs
• Are QDPs the Representative Assessees of QFIs
in India?
• Are QDPs equipped to take responsibility for tax
compliances?
• If they avail of services of CAs, then what would
be the role and responsibility of each party?
• Is the QFI appointing the QDP for tax services or
the CA?
• Even if there is a tripartite agreement between all
three, what are the roles and responsibilities?

8. QFIs – Costs of Tax Compliance
• Tax Risks are very high in India
• Cost of compliance and litigation is also very
high
• For retail individual investors, will the cost of tax
compliance be commensurate with the return on
investment?

9. QFIs- When will they actually arrive?
• Unless QDPs start operations, investors
cannot invest
• Once there is more clarity on the role and
responsibility of QDPs, they will start
operations.
• QDPs will hesitate to start operations till the
tax related doubts are not cleared by the Govt.

10. Thank you!!

11. Contact
Ameet Patel
Partner – Sudit K Parekh & Co.
2nd Floor, Ballard House, Adi Marzban Street,
Ballard Estate, Mumbai – 400 001, India
Phone # +91 22 66178000
Fax # +91 22 66178002
Email: ameet.patel@skparekh.com
www.suditkparekh.com
This presentation is solely for information and
private circulation and is not intended to
provide any advice or opinion to anyone