MOF added Book Keeping, Accounting and Taxation to List of Financial Services in IFSC

The Indian government has expanded the scope of activities permitted at the International Financial Services Centre (IFSC).

The Ministry of Finance announced this expansion in a gazette notification and it includes critical financial services including bookkeeping, accounting, taxation, and financial crime compliance.

The Notification Read as follows:

In exercise of the powers conferred by sub-clause (xiv) of clause (e) of sub-section (1) of section 3 of the International Financial Services Centres Authority Act, 2019 (50 of 2019), the Central Government hereby notifies the following as financial services, namely:-

1. book-keeping services;

2. accounting services;

3. taxation services; and

4. financial crime compliance services:

Provided that the financial services shall be offered by units in an International Financial Service Centre regulated by the International Financial Services Centres Authority, to non-residents whose business is not set up either by –

(i) splitting up of business already in existence in India; or

(ii) reconstructing of business already in existence in India; or

(iii) reorganising of a business already in existence in India:

Provided further that the units shall not offer the services by way of transferring or receiving of existing contracts or work arrangements from their group entities in India.

Explanation. – For the purpose of this notification –

(a). “financial crime compliance services” shall include services rendered in relation to compliances with Anti-Money Laundering (AML) / Countering the Financing of Terrorism (CFT) measures and Financial Action Task Force (FATF) recommendations, and other related activities;

(b). A “non-resident” shall mean a person resident outside India under the Foreign Exchange Management Act, 1999 (42 of 1999) and shall also include units in the International Financial Service Centre.

For Offiical Notification Download PDF Given Below: