AIF industry bats for tax parity with mutual funds

Industry players want clarity on GST on management fees and expenses to be borne by foreign investors of domestic AIFs

Industry players met finance ministry officials a few days AGO, lobbying for a pass-through status to losses incurred by alternative investment funds (AIFs), and and clarity on levy of the goods and services tax (GST) on management fees and expenses. They also want fees and expenses to be included in the AIF’s cost of investment, giving tax relief to investors. 

The industry wants losses on investments to be available to investors for set-off, rather than letting it lapse. According to the Finance Act, 2015, unit holders cannot offset losses from the fund against other profits and gains. 

For Category I