Seeks clarity on taxation of FIIs in
infrastructure corporate bonds
Indivjal Dhasmana | New
Delhi
June 21,
2014 Last
Updated at 12:18 IST
Ahead of the Budget, the Securities
and Exchange Board of India (SEBI) has taken up with the
government taxation issues for the proposed Real Estate Investment
Trusts as well infrastructure corporate bonds.
"We have come out with a
discussion paper on Real Estate Investment Trust and are hoping to get it
implemented soon. Our rules are ready, we have taken up with the
government that these must be given a pass-through certificate status so far as
tax status is
concerned," SEBI chairman U K Sinha said at a summit
organised by Skoch Consultancy Services.
Sinha expressed the hope that the
government will consider the demand favourably.
"The moment there is a clarity
on that, we will come out with our regulations," he said.
Sinha also wanted a tax
clarity on infrastructure corporate bonds for foreign institutional
investors (FIIs).
"In the infrastructure sector,
if a bond is issued and there is a FII, which is investing in
that, what is the level of tax with that entity? If it is vastly
different from the withholding tax which is imposed on others, should there be
different set of rules for FIIs and domestic institutional investors? These are
the issues we are looking at," Sinha said.
He also wanted the
government to enact a law to replace an ordinance which
provides SEBI the regulatory jurisdiction of all unregulated
entities that take deposits of at least Rs 100
crore.
"An ordinance is an ordinance.
It has a limitd life. I am hopeful that the government will consider that this
ordinance is converted into an act very soon," he said.
The SEBI chairman said there are
still a large number of unregulated fund raising activities. These are coming
under various names--chit funds or nidhi companies, housing schemes.
"That menace has not still been
fully controlled."
Sinha disclosed that since the
ordinance was promulgated, SEBI has taken action in more than 25
cases. "We have passed our orders, we have stopped them from raising
money." Source: Business Standard
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