Introduction:

The Indian government offers foreign investors an opportunity to invest in Indian markets through the Foreign Portfolio Investor (FPI) route. This has resulted in a steady increase in the number of FPIs registering in India and the quantum of FPI investments in India.

Though FIPs give attractive returns also they need to ensure that they are tax compliant in India so that there are no surprises in the future that could negatively impact the actual return earned from Indian securities. We provide FPIs valuable support to not only remain tax compliant in India but also optimize their tax cost and post-tax returns.

Why APMH?

We are well-known consultants for the last 39 years and are updated with the services as per the client requirements. We APMH have a dedicated team for handling FPI taxation with special accounting software like Quickbooks, Zoho Books, Xero, and Clearbooks that enable a quick turnaround time for issuing certificates for repatriation.

We believe in ensuring the accuracy and security of the data by providing MIS reports on a timely basis. Also, we update clients regularly about the latest developments on the tax front which may affect them in general or in particular. We have excellent networking with offshore management companies, banks, and regulators in Mauritius and GCC and have visited several countries for delivering talks on tax matters.

How can APMH help?

Initial FPI registration

Advise on the aspects that govern FPI investments in India i.e Regulatory framework governing FPIs, Eligibility criteria for registrations with DDPs (Designated Depository Participants), and Liaising with DDPs for FPI registration certificate.

Structuring FPI operations

Evaluating alternative structures for considering one valuable investment by doing proper analysis. Alternative structures keeping in mind the following:

– Indian Exchange Control and SEBI Regulations

– Income Tax Regulations

– Relevant Double Tax Avoidance Agreements (DTAA)

– Provisions of General Anti-Avoidance Rules (GAAR).

1.  
2. Assisting in setting up an entity in a foreign jurisdiction Permanent Account Number (PAN) and DSC application.
3. Assistance FPIs in making an application for allotment of a Permanent Account Number (PAN) in India (tax registration number).
4. Assistance FPIs in making an application for the allotment of a DSC in India which is used for filing tax returns.
5.  

Regulatory and accounting services:

• With the use of automated systems, assist clients in maintaining a record of its 

   securities in India after coordinating with DDP.

• Make note of corporate actions about securities held by the FPI and 

   factor in its impact while preparing tax computations.

• Provide regular Management Information System (MIS) reports to the FPIs for 

   their perusal.

• Computation of capital gains/losses on the sale of Indian securities and 

   interest/dividend income earned by the FPIs based on 

   scrip-wise accounting.

• Assist the FPI in representation/litigation before the Indian tax or appellate 

   authorities for assessment/ appellant/lower withholding tax 

   certificate proceedings.

Fund Accounting Services for Gift City:

• Fund Setup

• CAT II / CAT III funds

• • Base Currency USD

• Investor Management
• • Investors’ KYC details with Investor’s base currency
• • Share Class
• • Drawdowns Management
• • Multi-Currency Fund receipts
• • Allotment of Shares at face value/ NAV

• Investment Accounting
• • Investment booking in Security’s base currency and in USD
• • Fixed Deposits/ Liquid Plan Investments in Security’s base currency convertible to USD
• • Updation of Foreign Currency rates
• • Auto updation of market rates for listed equities 
• • Manual updation of market rates for other listed and unlisted Securities
• • Expenses – Custodial and Management 
• • Income / Expense Accruals and reversal, if any 
• • Management Fees computation 
• • Fees accounting

• Reporting (Base  and Foreign Currency)
• • Portfolio Valuation Report with Unrealised Gain / Loss 
• • Holding Report – FIFO/ Weighted Avg - in base currency with security’s currency as reference
• • Statement of Profit Report – FIFO/ Weighted Avg - in base currency with security’s currency as reference and Forex Gain / Loss 
• • Other Investments /Assets Report
• • Forex Gain/ Loss Report
• • Statement of Affairs (SOA) - in base currency with investor’s currency as reference

• Financial Accounting (Base Currency only)

1. • Mutli-currency Bank Accounting 

• • Reconciling Bank accounts 
• • Generating primary books of account 
• • Trial Balance 
• • Financials

• Investor Reporting 
• • Investors Capital Report - in base currency with investor’s currency as reference
• • NAV Calculation – in base currency and converted into Investor’s currency on report date
• • SOA in base currency with investor’s currency as reference

• Regulatory Reporting
• • Details as applicable and demanded by IFSCA 

• Year End Services
• • Providing of Data Backups 
• • Presentation and Providing details of Accounts to Auditors

• Additional Services 
• • Emailing of SOA - Periodical           
• • Hard copy printouts of complete set of financial accounts