India Court Ruling Provides Certainty for Tax Treaty Provision

A ruling by an Indian court allowing a fund manager to apply favorable rates in the India-Mauritius tax treaty will provide more certainty for the tax treatment of transactions, mergers and acquisitions.

The case involves a claim by Tiger Global International that shares sold by its Mauritius-based entities weren’t liable for capital gains tax because they were purchased from another company before the treaty was revised to add the tax.

India’s tax treaty with Mauritius was amended in May 2016 to introduce taxation of capital gains arising in India. It became effective from April 1, 2017.

The Delhi High Court ...