When people talk about higher education in Delhi-NCR, Galgotias University is often part of the conversation. The university is known for its courses, campus life and large student base. Right now, it is also in the news due to a controversy over a robot dog on campus. At the same time
The committee recommended that all banks whether in the private or public sector, should adopt a uniform policy of not charging penalties from customers for failure to maintain a minimum balance in their savings accounts. New Delhi: A Parliamentary committee has recommended that banks should not
Premier League leaders Arsenal were held to a draw at the Molineux by bottom-placed Wolves on Thursday as Mikel Arteta and Co. dropped more points in their pursuit of the title, leaving the door open for a possible Man City catch-up. The Gunners took their season tally to 58 points in 27 outings
New Delhi: With the arrival of the spring season, the Government of India never fails to showcase the flora of the country at various levels, with the showcase of flower shows in various cities. One of the most significant celebrations of flowers in Noida comes back with the arrival of spring
Mamata Banerjee said that Prime Minister Modi used the prefix 'Swami' in the message while Ramakrishna Paramahamsa is widely known as 'Thakur'. Kolkata: West Bengal Chief Minister Mamata Banerjee on Thursday criticised Prime Minister Narendra Modi for using the word 'Swami' as prefix in a social
Tiger Global saga: An interpretation of maladies that's open to more ills
Tiger Global may file a review petition following a Supreme Court verdict on the India-Mauritius tax treaty. The ruling alters how investors interpret tax treaties, particularly regarding indirect transfers. This development sparks discussions in tax and legal circles. The verdict's interpretation of a key treaty article differs significantly from investor expectations.
What's next in the Tiger Global saga? The buzz is that over the past few days Pricewaterhouse honchos and partners of the law firm Nishith Desai Associates have been discussing the Supreme Court verdict with legal eagle Harish Salve, sparking a chatter in tax and legal circles that the Wall Street investment firm may examine moving a review petition. Some are betting New Delhi may step in to clear the fog. Why?
The wheels within wheels in the 150-page verdict has turned Tiger's tussle with the tax office far from an open and shut case: it would shape the way investors interpret the language of a tax treaty-an animal that emerged in 1920s from the League of Nations.
What really changed? Besides doubting the tax residency certificate (TRC) that Tiger Global Mauritius obtained from the island authorities to avoid capital gains tax, the apex court's interpretation of a crucial article in the India-Mauritius treaty is dramatically different from that of investors, particularly those from the US, and their army of top notch advisors.
UPTURNING BELIEFS
The paragraphs 18 and 19 of the ruling are lethal as they upturn the way most believe treaties work. The upshot of paragraph 18 is that capital gains tax should not be exempted for 'indirect transfer' of shares of an Indian company, even if the Mauritius entity has a foolproof TRC and adequate commercial substance which satisfies tax officials.
A 'direct transfer is a transaction where a Mauritius investor sells shares of an Indian company it directly holds; an 'indirect transfer' is when a Mauritius investor sells shares of a Singapore company which in turn owns an Indian company - similar to the Tiger-Flipkart deal.
The bone of contention is Article 13(4) in the revised India-Mauritius treaty which says: "Gains from alienation of any property other than referred to in paragraphs 1, 2, 3 and 3A shall be taxable only in the contracting state of which the alienator is a resident". Here, "alienator" (or seller) is Tiger Mauritius, "contracting state" is Mauritius and "any property" refers to shares of Flipkart Singapore which Tiger Mauritius sold.
Since Articles 13 -1, 2, 3 and 3A talk about imposition of tax on 'direct' transfers of assets like shares and immovable properties in India, almost all foreign investors interpret that "any property other than (those) referred to in (the above) paragraphs" include shares of companies in other jurisdictions (like Singapore), along with equity derivatives and certain other securities. By this logic, their transfers are not taxed in India.
Legal Ambiguity
However, according to SC, 13(4) cannot be read in isolation, and since the previous articles deal with direct transfers, 13(4) is confined to 'direct' transfers; therefore, the sale of a Singapore company which derives its value from an Indian company should be taxed in India.
Paragraph 19 of the ruling sticks to an austere interpretation found in recent global discussions for creating a framework to plug tax loopholes and treaty shopping. Here, the court has spelt out, once again unambiguously, that tax would kick in if an offshore investor escapes tax in both the jurisdictions (i.e. Mauritius as well as India).
Whether these are part of the core verdict or passing reference-obiter dicta in legal parlance-is a moot point, depending on which side of the table one sits. But it can spur tax officials, chasing steep revenue targets, to shoot notices, questioning indirect investment arrangements of foreign investors through Mauritius or Singapore (which has a near identical treaty with India). Apart from the changed tax-arithmetic that may (or, may not) impact foreign direct and portfolio inflows, the implications of the ruling, and how the government handles them, could also influence the status of GIFT City which is trying to position itself as an international investment hub.
If GIFT has to be showcased as a centre where foreign investors would float entities for investing across markets, the government would understandably want GIFT City to be eligible for treaty benefits in other countries the way Mauritius or Singapore is.
A decade before the end of apartheid, India had signed the treaty with Mauritius, an entrepot for South Africa, as a quid pro quo deal: exports from India reached Africa through the Indian Ocean island while investors from Mauritius were spared capital gains tax in India. The treaty was changed in 2016 to tax investments post March 2017, amid hue and cry over its abuse and urgency to mobilise revenue. Today, a longer shadow looms over it.
Add as a Reliable and Trusted News Source Add Now!
Source: EconomicTimes
Related Posts: India, France upgrade ties to ‘special global strategic partnership’ Microsoft says on pace to invest $50 billion by 2030-end across Global South India engaging global partners more intensively Delhi High Court seeks Centre’s stand on plea challenging provisions of data protection law The Sweetest Bridgerton Review On The Internet Comes From This Dadi Australia set to conduct forensic review of disastrous T20 WC campaign India wants use of AI for global common good MP High Court denies bail to doctor who prescribed cough syrup linked to deaths of 26 children Mahua Moitra Moves Delhi High Court Against Ex-Partner Over Custody Of Pet Dog Henry Hoax bomb threat to Dehradun district court triggers search operation
Sri Lanka vs Zimbabwe LIVE streaming, telecast and match time in India. Watch SL vs ZIM T20 World Cup 2026 clash live today. Sri Lanka take on Zimbabwe today, February 19, in Colombo with both teams already through to the Super Eight stage of the 2026 ICC Men’s T20 World Cup
50 minutes ago
The White House has warned Iran would be "very wise" to make a deal with the US, amid reports that President Donald Trump is weighing fresh military action against the Islamic Republic. Press secretary Karoline Leavitt told a news briefing that Trump was still hoping for a diplomatic resolution
50 minutes ago
Union Minister of New & Renewable Energy Pralhad Joshi on Wednesday (February 18, 2026) said India has over 272 GW non-fossil fuel-based electricity generation capacity, including 141 solar and 55 GW wind energy, at the launch of 'India-U.K. Offshore Wind Taskforce'
50 minutes ago
KERALA LOTTERY RESULT 19-02-2026 LIVE: The Kerala State Lottery result for the "Karunya Plus KN - 611" draw on Thursday, February 19, 2026, is scheduled to be announced at 3 PM. This lottery draw is part of the seven weekly draws held in Kerala
50 minutes ago
Eating healthy can be hard for people who love foods like burgers. Fitness influencer Vanshika Khurana shared a tasty solution: a spicy burger salad. The recipe satisfies burger cravings while keeping calories low and protein high. In her video, Vanshika explained the inspiration behind the dish
50 minutes ago
Pakistan Defence Minister also claimed that India and the Taliban administration were “on the same page” regarding actions against his country. Pakistan's Defence Minister Khawaja Asif on Tuesday alleged that terrorist attacks in the country are the result of a "proxy war" orchestrated by India
50 minutes ago
The Desiya Murpokku Dravida Kazhagam on Thursday joined the Dravida Munnetra Kazhagam-led Secular Progressive Alliance in Tamil Nadu ahead of the Assembly elections. This is the first time that the Desiya Murpokku Dravida Kazhagam has joined the alliance
50 minutes ago
Apple has a big March 2026 event lineup in New York but the company is also focused on developing its smart range which is expected to include smart glasses and other devices. Apple is said to be working on not just one but three gadgets in that vein
50 minutes ago
Did Abhishek Sharma break ICC rules by wearing Siraj’s jersey? Here’s the official regulation and what really happened. No, Abhishek Sharma did not violate ICC regulations when he walked out to bat wearing Mohammed Siraj’s jersey during India’s T20 World Cup 2026 match against the
50 minutes ago
As India gears up for the Super 8s, assistant coach Ryan ten Doeschate points out significant obstacles on the horizon. The predictable nature of the left-handed top order and their struggles against finger spinners have caught the watchful eyes of adversaries. To maintain their competitive edge
50 minutes ago
Around a dozen schools in Noida received bomb threat emails on Thursday, triggering panic among students, parents and staff. The threats were sent through email, officials said. Soon after the information was received, Noida Police teams rushed to the affected schools
50 minutes ago
At the AI Impact Summit India 2026, Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL), described Prime Minister Narendra Modi as the “guide and philosopher leader of this summit," highlighting the government’s role in shaping India’s artificial intelligence
50 minutes ago
On the occasion of Shiv Jayanti 2026, many Bollywood stars wished fans on social media. Mumbai: Bollywood actors Sonali Bendre and Vicky Kaushal on the 19th of February, took to their respective social media accounts to remember Chhatrapati Shivaji Maharaj on the occasion of Shiv Jayanti
50 minutes ago
Google Pixel 10a has launched in the market this week and the new model is coming before Apple brings the iPhone 17e model to the country. The Pixel 10a is the latest from Google in its mid-range category and sits well below the premium versions but still brings some of the flagship features to a
50 minutes ago
The Dehradun district court received a bomb threat e-mail, prompting a thorough search of the premises, police said. No suspicious material was found during the search, and the threat received on Wednesday (February 18, 2026) was subsequently declared a hoax, they added
50 minutes ago
If you use PhonePe for UPI payments, you may no longer need to enter your PIN for smaller transactions. The fintech platform on Thursday announced that it is introducing biometric authentication for UPI payments, allowing users to approve transactions using their smartphone’s fingerprint scanner
50 minutes ago
Chhatrapati Shivaji Maharaj Jayanti 2026 wishes: Riteish Deshmukh extended his best wishes to all the devotees of Chhatrapati Shivaji Maharaj. He also highlighted the importance of educating children across India about Shivaji Maharaj's contributions and enduring legacy
50 minutes ago
A baby’s skin does far more than just add to their soft and cuddly charm; not only is it the body’s largest organ, but it also serves as the body’s first line of defence, regulating temperature, retaining moisture, and protecting against external irritants and infections. Yet
50 minutes ago
Ghooskhor Pandat row: Referring to objections raised after the teaser release on February 3, the affidavit said the promotional material was withdrawn within days. New Delhi: Filmmaker Neeraj Pandey has filed an affidavit before the Supreme Court stating that the controversial title of the upcoming
50 minutes ago
The Madhya Pradesh High Court on Tuesday rejected the bail applications of Praveen Soni, a government doctor, and his wife in connection with the deaths of at least 26 children who had consumed the contaminated Coldrif cough syrup that he had allegedly prescribed
50 minutes ago
Highlighting the country’s rapid technological progress, Macron pointed to the widespread adoption of the Unified Payments Interface (UPI), saying India has succeeded in creating a digital identity ecosystem for 1.4 billion people, a feat he noted no other nation has accomplished
50 minutes ago
Senior national security officials have informed the White House that US forces could be ready for an attack by this weekend, following a notable buildup of air and naval assets in the Middle East over recent days. The US military is reportedly prepared to launch strikes against Iran as early as
50 minutes ago
The Supreme Court of India has delivered a rebuke against the prevalent culture of freebies. The judges said that such initiatives hinder economic progress and stifle development. The Supreme Court on Thursday has criticised the culture of freebies
50 minutes ago
“India has built something that no other country in the world has built. A digital identity for 1.4 billion people,” Macron said. French President Emmanuel Macron on Thursday praised India’s tech growth and said that the country has built a digital system that no other country has
50 minutes ago
Hyderabad: Telangana Housing Board has conducted the public auction of open plots in Lakshmiguda, Rajendranagar mandal near Hyderabad. The highest bid touched Rs 51,000 per square yard on Wednesday, February 18. According to Vice-Chairman VP Gautham
50 minutes ago
MCX gold April futures gained 0.22 per cent to Rs 1,56,100 per 10 grams on an intra-day basis. Meanwhile, MCX silver March futures gained 0.29 per cent to Rs 2,44,971 per kg. Mumbai: Gold and silver prices continued to rise for a second consecutive session on Thursday -- amid rise in geopolitical
50 minutes ago
French President Emmanuel Macron on Wednesday announced measures to boost academic ties with India, including a visa-free transit facility and a target to host 30,000 Indian students in France by 2030. He made the announcement during an event at the All India Institute of Medical Sciences (AIIMS)
50 minutes ago
