Venture Intelligence (TSJ Media Pvt. Ltd.)
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India-Mauritius DTAA treaty: SC stays HC ruling favouring Tiger Global in Flipkart deal
The Supreme Court (SC) has stayed a Delhi High Court order favoring Flipkart investor Tiger Global, saying that the issue has pan-India implication and needs thorough attention.Tiger Global, via its Mauritius-based entity, had sought tax exemption in India on gains from selling shares in Flipkart Singapore under provisions of India-Mauritius Double Taxation Avoidance Agreement (DTAA). It had contended that the shares, acquired before 1 April 2017, were exempt under India-Mauritius tax treaty. However, the Indian tax authorities denied the exemption, claiming the entity was a ‘conduit’ company established solely for tax avoidance.The High Court ruled in favour of Tiger Global, stating that the India-Mauritius treaty provides a grandfathering provision, exempting capital gains tax in India for shares acquired before April 1, 2017.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.