Relief For Tiger Global As Delhi HC Overturns AAR Ruling On Flipkart Deal

Relief For Tiger Global As Delhi HC Overturns AAR Ruling On Flipkart Deal

SUMMARY

The Delhi HC has overturned an order of Authority for Advance Rulings (AAR) denying private equity firm Tiger Global’s tax exemption under the India-Mauritius Double Tax Avoidance Agreement (DTAA) when it exited Flipkart in 2018

The court's ruling will likely bring relief to numerous foreign investors who utilised Mauritius-based entities to buy shares in Indian companies before April 2017

Tiger Global firms, which had tax residency certificates (TRCs) from Mauritius, bought Flipkart shares between 2011 and 2015

The Delhi High Court has reportedly overturned an order of Authority for Advance Rulings (AAR) denying private equity firm Tiger Global’s tax exemption under the India-Mauritius Double Tax Avoidance Agreement (DTAA) when it exited Flipkart in 2018.

As per an ET report, the court has said that tax-friendly jurisdictions like Mauritius are aimed to aid global commerce, transcend trade barriers, benefit nations-and not necessarily conjure suspicions of taxmen who should refrain from throwing additional barriers to deny the advantages of tax treaties between countries to bonafide investors.

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