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Tiger Global Ruling - AAR labels start-up exit strategy as tax avoidance

June 26, 2020[2020] 117 taxmann.com 332 (Article)
The taxpayers had filed an application to claim an exemption on capital gain tax on its sale of shares held in Flipkart India Private Limited (‘Flipkart India’). The AAR held that the entire arrangement was prima facie designed for claiming tax benefits in the India-Mauritius Treaty (‘IM Treaty’) and that the organisation is designed to avoid tax in India.
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