GIFT City units can provide services in 4 more areas

Source: The Times of India

NEW DELHI: Finance ministry has notified four services — book-keeping, accounting, taxation and financial crime compliance — which can be provided through units in IFSC or GIFT City, with tax benefits available to the entities.

The finance ministry notification stipulated that the services have to be rendered to non-residents whose business is not set up by reorganising their existing operationsin India.

It also said that “financial crime compliance services” will include services rendered towards compliances of anti-money laundering (AML) and countering the financing of terrorism (CFT) measures and Financial Action Task Force (FATF) recommendations, and other related activities.

The decision is expected to provide a boost to the Big Four firms to provide some of their services through arms that they float in GIFT City, the only operational international financial services centre in the country.

Currently, entities are allowed to operate from GIFT City to provide banking, capital market, asset management, insurance and aircraft leasing services apart from fintech and stock and commodity exchanges.