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Taxman's glare on VC, PEs intensifies; focus on grandfathering gains under treaties

Economic Times  

The tax department is heightening scrutiny of venture capital and private equity funds using India-Mauritius and India-Singapore treaties to assess eligibility for 'grandfathering benefits' as it shifts to a more rigorous assessment of cross-border tax arrangements. The authorities are now asking for details such as the specifics of office spaces, electricity bills, the roles and expertise of directors and employees in Singapore and Mauritius, locations of decision-making, and a thorough review of board meeting minutes.