Private Equity

Fund News

Foreign entities from Mauritius may keep the taxmen at bay

Economic Times  

The Income tax Appellate Tribunal (ITAT) has, rules in favour of Blackstone FP Capital Partners Mauritius V Ltd in a case realising capital gains of over INR 900 crore via the sales of shares in CMS Info Systems during FY16 The tax officer's contention was that the effective control of Mauritius company lay with entities in the Caribbean tax haven Cayman Islands. Thus, Blackstone cannot derive the capital gains tax benefits - with no tax required to be paid for sale of stocks bought before 2017 - as provided in the amended treaty between India and Mauritius.