AUTHORITY FOR ADVANCE RULING ORDERS CAPITAL GAINS EXEMPTION FOR ARDEX INVESTMENT

An appellate tax tribunal has ordered capital gains tax exemption for a Mauritius company which wanted to sell stake in an Indian company to another overseas firm. The Authority for Advance Ruling (AAR), a quasi- judicial body which gives advice on tax matters in advance of the actual transaction has said that the exemption holds good even if the company is set up in Mauritius for the purpose of avoiding capital gains tax in the country.