Government Broadens Horizon of financial Services offered at IFSC by including Book-keeping, Accounting and Taxation Services

The Central government has expanded the array of financial services available at the International Financial Services Centre ( IFSC ). The latest inclusion encompasses Book-keeping, Accounting, and Taxation Services, marking a strategic move to enhance the financial offerings within the IFSC.

The official communication regarding this expansion was conveyed through a notification published in the gazette, dated January 18, 2024. Designated as notification no. SO 291 ( E ), the document provides detailed insights into the incorporation of these financial services into the regulatory framework of IFSC.

According to the notification, units within the IFSC are now authorised to offer Book-keeping, Accounting, and Taxation Services. The regulatory oversight for these services falls under the purview of the International Financial Services Centres Authority ( IFSCA ). It is noteworthy that these services are expected to cater specifically to non-residents whose businesses are distinct from those formed through the division or restructuring of existing Indian businesses.

The notification underscores specific limitations imposed on units functioning within the IFSC. It clearly articulates that these units are barred from providing services that entail the transfer or receipt of existing contracts or work arrangements from their affiliated entities within India. This restriction is designed to uphold the integrity of the IFSC and mitigate the risk of potential misuse of its facilities.

The move aligns with the evolving needs of international businesses and investors seeking a diverse range of financial solutions. By subjecting these services to regulation by the IFSCA, the government aims to ensure transparency, accountability, and compliance with international standards.

As the IFSC continues to evolve as a global financial hub, the inclusion of Book-keeping, Accounting, and Taxation Services is poised to attract a broader spectrum of international businesses and contribute to the overall growth and competitiveness of the IFSC.

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