MUMBAI: Participatory notes are back in favour since amended tax treaties and GAAR (General Anti Avoidance Rules) brought Indian laws closer to international compliance norms with effect from April 1. "Some investors might be tempted to invest through the P-note route to get treaty benefits on equity and derivative gains. "We are indemnifying our P-note investors that GAAR shall not apply on their investments," the executive told ET. "There are other distinctive features of using the P-note route such as loss of tax credits and loss of carry forward, multiple counter party risks etc. This has also resulted in a conflict between the tax consultants and custodians.

Source: Economic Times April 11, 2017 19:30 UTC