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TMI BlogFramework for setting up of Wholly Owned Subsidiaries by Foreign Banks in India – Taxation mattersX X X X Extracts X X X X X X X X Extracts X X X X ..... Framework for setting up of Wholly Owned Subsidiaries by Foreign Banks in India – Taxation matters X X X X Extracts X X X X X X X X Extracts X X X X ..... rnment of India has inserted, by the Finance Act, 2012, a new Chapter XII-BB titled- 'Special Provisions relating to Conversion of Indian Branch of a Foreign Bank into a Subsidiary Company' in Income Tax Act, 1961, inter alia, exempting capital gains arising from such conversion from capital gains tax, with effect from April 1, 2013. As regards applicability of stamp duty in the case of conversio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of existing branch of a foreign bank into a wholly owned subsidiary, a new section '8E' has been inserted in Indian Stamp Act, 1899 vide Banking Laws (Amendment) Act, 2012 notified in Gazette of India Notification dated January 18, 2013, exempting from stamp duty any conversion of a branch of a foreign bank into wholly owned subsidiary or transfer of shareholding of a bank to a holding company i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n terms of the scheme or guidelines of RBI.
Foreign bank desirous of converting their branches into wholly owned subsidiaries may take into account the above developments.
Background
It may be recalled that Reserve Bank issued the 'Framework for setting up of Wholly Owned Subsidiaries by Foreign Banks in India' on November 6, 2013.
Ajit Prasad
Assistant General Manager X X X X Extracts X X X X X X X X Extracts X X X X ..... e - PIB ..... X X X X Extracts X X X X X X X X Extracts X X X X
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