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    Question

    Under what conditions can financial services be offered by units in an International Financial Service Centre (IFSC) to non-residents, according to the Ministry of Finance's notification?

    A Only to businesses already established in India Correct Answer Incorrect Answer
    B Only to businesses set up by splitting up existing businesses in India Correct Answer Incorrect Answer
    C Only to businesses undergoing reconstruction/reorganization in India Correct Answer Incorrect Answer
    D Only to non-residents regardless of their business origin Correct Answer Incorrect Answer
    E Only to businesses set up either by splitting up existing businesses or reconstructing/reorganizing existing businesses in India Correct Answer Incorrect Answer

    Solution

    The government has expanded the scope of activities that can be undertaken at the International Financial Services Centre (IFSC) by including services such as bookkeeping, and accounting. As per a gazette notification issued by the Ministry of Finance, various services, including book-keeping, accounting, taxation, and financial crime compliance, have been included as part of financial 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 (IFSCA) to non-residents whose business is not set up either by splitting up of business already in existence in India; or reconstructing/reorganising of business already in existence in India.These units should not offer services by way of transferring or receiving existing contracts or work arrangements from their group entities in India.

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