Tax sops announced in Union Budget 2016 shot in the arm for India’s First IFSC at GIFT City: Niranjan Hiranandani
AHMEDABAD/ MUMBAI, 22nd MARCH, 2016: India's first International Financial Services Center (IFSC) at the Gujarat International Finance Tec-City (GIFT CITY), Gandhinagar, Gujarat has received a major boost with the Union Finance Minister announcing a slew of tax benefits for setting up India’s first ever International Financial Service Centre (IFSC) in India. This announcement augurs much awaited push to GIFT City moving into the fast lane for rising demand in work-spaces at IFSC.
The tax incentives proposed include lower minimum alternate tax (MAT) and waiver of dividend distribution tax (DDT), securities transaction tax (STT), exemption from commodities transaction tax (CTT) to companies establishing their units in the IFSC. “These incentives have come at an opportune time, enquiries from interested buyers of work spaces in our project ‘Hiranandani Signature’ in GIFT City have increased post the Budget Speech of Finance Minister ArunJaitley,” added Niranjan Hiranandani. The Union Budget for 2016-17 has proposed to charge MAT at the rate of 9%as against normal 18% from units located in an IFSC.
Given the positives in the Budget, the Mumbai-based Hiranandani Communities has witnessed enhanced enquiries, and is in final stages of talks with leading financial institutions from India’s BFSI sector, to facilitate their picking up space in the future-ready commercial complex, ‘Hiranandani Signature’ - which enjoys the ‘first mover’ advantage at GIFT CITY.
“In keeping with our past record in Mumbai and Thane, we look forward to India’s leading BFSI organisations making ‘Hiranandani Signature’ in GIFT CITY, Gandhinagar their base to facilitate global business,” said Niranjan Hiranandani. GIFT CITY is the 1st International Financial Services Centre (IFSC), and although located within India, offers the facility of acting like a ‘foreign operations office’, which helps facilitate easy movement of capital. ‘Hiranandani Signature’ will provide global infrastructure in a well-planned commercial complex to meet requirements of Financial Institutions located therein.
Real estate development by the Hiranandani Brand has always been a trendsetter, when it comes to real estate which appreciates in value and offers growth opportunities on a global scale, added Niranjan Hiranandani. “It is not a mere coincidence that whenever brand Hiranandani has created commercial realty hubs, the location has ended up being a winner; be it the stupendous success of Hiranandani Gardens at Powai or Hiranandani Meadows and Hiranandani Estate in Thane, it has always been that Brand Hiranandani was first to spot the potential of what were then, the ‘new’ locations and new real estate models,” explained Niranjan Hiranandani. “In all of these, the Commercial Space – be it work spaces or offices or back-end hubs – have been the flag-bearers of commercial real estate growth in these success stories, something we hope to replicate with Hiranandani Signature in GIFT CITY, Gandhinagar,” added Niranjan Hiranandani, the driving force behind this ambitious dream project.
GIFT CITY is coming up as a Special Economic Zone (SEZ) largely devoted to banking, finance and financial services. “It is India’s first IFSC, and ‘Hiranandani Signature’ has been conceived as a unique commercial real estate offering here,” said Niranjan Hiranandani. “Financial Institutions will find their presence here advantageous as it will help them service foreign currency needs of their corporate clients,” he pointed out. The first building at ‘Hiranandani Signature’ is expected to be ready by December 2016,” he added.
The recent announcement of IT/ITeS policy and waiver of stamp duty on share broking transactions in GIFT City by the state government of Gujarat have been positives; the announcement for IFSC in the Union Budget will give a further boost the development of India's first IFSC at GIFT City. Hiranandani Signature, the future-ready commercial complex, will offer leading-edge infrastructure, services and platforms to Banking, Insurance and Financial Services enterprises. Put together, it will be a significant competitive advantage for players in India’s BFSI sector to operate regionally and globally,” concluded Niranjan Hiranandani.