142. Conditions referred to in Schedule VI [Note 1(g)(ii)(B)] to Act required to be fulfilled by an investment division of an offshore banking unit.—

(1) For the purposes of Schedule VI [Note 1(g)(ii)(B)] to the Act, an investment division of an offshore banking unit shall fulfil the following conditions: —

(a) it shall maintain separate accounts for the registered investment division reflecting the true and fair accounts of all transactions relating to the investment division and which shall ensure that direct and indirect expenses relating to the incomes referred to in rule 141 and other incomes, are properly recorded, accounted for and apportioned thereto;

(b) it shall get the accounts referred to in clause (a), audited by an accountant before the specified date and such accountant shall furnish by that date the report of such audit in Form No. 71, electronically under digital signature, and duly verified in the manner indicated therein;

(c) it shall maintain proper documentation in respect of —

(i) inbound remittance for buying and selling the investments; and

(ii) the use of inward remittance made to India;

(d) it shall maintain bank statement of all accounts of the registered investment division;

(e) it shall maintain contract notes relating to purchase and sale of securities by the registered investment division; and

(f) it shall maintain a statement of securities issued by the custodian.

(2) The income of a specified fund attributable to an eligible investment division shall not be exempt under section 11(1) read with Schedule VI [Table: Sl. Nos. 1 to 4] to the Act unless it complies with sub-rule (1)(b) and rule 141(3).

(3) For the purposes of this rule, —

(a) ?accountant? shall have the meaning assigned to it in section 515(3)(b);

(b) ?investment division of an offshore banking unit? shall have the meaning assigned to it in Schedule VI [Note 1(b)] to the Act;

(c) ?registered investment division? shall mean an investment division of an offshore banking unit which fulfils the condition specified in Schedule VI [Note 1(g)(ii)(A)];

(d) ?securities? shall have the meaning assigned to it in Schedule VI [Note (1)(e)] to the Act; and

(e) ?specified date?, in relation to the accounts of the registered investment division of any tax year, means a date one month prior to the due date specified under section 263(1)(c) for the said tax year.