Venture Intelligence (TSJ Media Pvt. Ltd.)
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SC rules against Tiger Global in $1.7 B Flipkart tax claim
The Supreme Court has set aside a Delhi High Court judgement that had exempted the Mauritius-based units of US-headquartered private equity firm Tiger Global, from capital gains tax. This ruling pertains to the firm's stake sale in Flipkart to US retailer Walmart in 2018.The dispute originated when Tiger Global sold shares it held in Flipkart Singapore (which, in turn, held stakes in Flipkart India) to a foreign investor linked to Walmart. The Flipkart Singapore shares were held by Tiger Global entities in Mauritius.The Income Tax Department challenged this arrangement, arguing that Tiger Global Mauritius was merely a vehicle to avoid tax by exploiting the India-Mauritius Double Tax Avoidance Agreement (DTAA). The tax authorities raised a demand of INR 14,500 crore (over USD 1.7 Billion), disregarding the Tax Residency Certificate (TRC) obtained by Tiger Global.
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Venture Intelligence (TSJ Media Pvt. Ltd.)
1, Maharani Chinnamba Road; Alwarpet; Chennai - 600018. India.