29 January 2016 India private ruling authority holds transfer of Indian subsidiary shares is not a tax avoidance transaction In Dow AgroSciences Agricultural Products Ltd. (Applicant), India's private ruling authority held that the transfer of Indian company (Ind Co) shares from its Mauritian parent company to a Singaporean group entity (Sing Co) pursuant to a reorganization plan was not a tax avoidance transaction, based on the holding period of the shares and the reorganization objective of the group structure. Accordingly, it was held that capital gains on the transfer would be exempt from Indian tax under Article 13(4) of the India-Mauritius Income Tax Treaty (Treaty). A Tax Alert prepared by Ernst & Young's Indian Tax Desk in New York, and attached below, provides additional details. Document ID: 2016-0204 |
