SINGAPORE: As the Indian government amended the Singapore treaty to give clarity on taxation, many foreign portfolio investors (FPIs) and private equity firms are exploring new structures and routes for Indian investments, people in the know said.
The new routes or structures being explored by the investors are also in the context of GAAR (general anti-avoidance rule) –the direct taxation regulation that is set to come into force from April 1this year.
Many FPIs are taking a relook at their investment strategy in the context of these two main changes, and whether they need to or could change the way they invest to save on some taxes.
“There are several recent/impending tax developments that investors will have to look at, including amended tax treaties, GAAR and also, what offshore transactions amount to indirect transfer of shares. In relation to private equity firms, given grandfathering of investments made till March 31, 201.
