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October 2015

DIPP Clarification dated September 15, 2015

By Gaurang Gandhi Chartered Accountant

Reading Time 1 mins

Clarification on FDI Policy on Facility Sharing Arrangements between Group Companies

This Press Note clarifies as under: –

Facility sharing agreement between group companies through leasing / sub-leasing arrangements for larger interest of business will not be treated as ‘real estate business’ within the provisions of the Consolidated FDI Policy Circular 2015, provided such arrangements are at arm’s length price in accordance with the provisions of Income Tax Act 1961, and annual lease rent earned by the lessor company does not exceed 5% of its total revenue.

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October 2015

DIPP Clarification dated September 15, 2015

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DIPP Press Note No. 9 (2015 Series) dated September 15, 2015

DIPP Press Note No. 10 (2015 Series) dated September 22, 2015

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October 2015

DIPP Clarification dated September 15, 2015

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DIPP Press Note No. 9 (2015 Series) dated September 15, 2015

DIPP Press Note No. 10 (2015 Series) dated September 22, 2015