Abstract

The caselet discusses the inflow of Foreign Institutional Investments to India. The decision of the Authority of Advanced Ruling (AAR) with regard to the taxation of Fidelity, a US-based FII is focused on. The caselet also looks into the applicability of the Indo-US Double Taxation Avoidance Agreement to investors.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Taxation of Foreign Institutional Investors in India
• How the Authority for Advanced Rulings is influencing the tax-payers
• How FIIs are avoiding tax by not having a Permanent Establishment (PE) in India
• and The liability of FIIs in India in case of capital gains

Keywords

Foreign Institutional Investors (FIIs), SEBI, Authority for Advanced Rulings (AAR), Fidelity, Indo-US Double Taxation Avoidance Agreement (DTAA), Permanent Establishment, Standard Chartered Bank