The Central Board of Direct Taxes (CBDT) has issued clarifications on tax-related issues that have been plaguing qualified foreign investors (QFIs), in particular on their withholding obligations and their ability to use tax treaty benefits, by way of FAQs dated 24 December 2012. This is in the context of the Ministry of Finance’s press release dated 29 May 2012, which sought to provide various measures to remove the bottlenecks and to stimulate foreign investments into India via the QFI route.
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The legislative and regulatory update is compiled by Nishith Desai Associates, a Mumbai-based law firm. The authors can be contacted at nishith@nishithdesai.com. Readers should not act on the basis of this information without seeking professional legal advice.
