Saturday, May 14, 2011

AAR: CAPITAL GAINS FROM TRANSFER OF SHARES HELD BY MAURITIAN COMPANY NOT TAXABLE IN INDIA

The Authority for Advance Rulings (AAR), a quasi-judicial panel, has ruled that capital gains arising from transfer of shares held by a Mauritian company in an Indian firm are not taxable in India.
The ruling, in response to a plea by DB Zwirn Mauritius to ascertain its tax ability on transfer of equity shares of Quippo Telecom Infrastructure, will come as a major relief to UK-based Vodafone which has sought the authority's opinion in a transaction of similar nature. Vodafone has sought AAR's opinion on if the company was required to deduct tax on payment made to Essar
for the 22% stake held by the Indian company through a Mauritius- based entity.

0 comments:

Post a comment