CA Aishwariya K Rajagopal
Quick Summary
Why the Tiger Global case matters? The Tiger Global case has become important not just because of the amount involved, but because of the principle it reinforces. In 2018, Tiger Global sold its stake in Flipkart and claimed capital gains tax exemption under the India-Mauritius tax treaty, relying
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FAQ :
Tiger Global claimed capital gains tax exemption under the India-Mauritius tax treaty based on a Tax Residency Certificate (TRC) after selling its stake in Flipkart.
The Supreme Court clarified that a TRC is mandatory but does not prevent tax authorities from examining the transaction's substance, control, and tax avoidance intent.
The ruling highlights that foreign investments routed through countries like Mauritius or Singapore may face scrutiny if they lack genuine business substance, even for past transactions.
Not necessarily, but it introduces greater uncertainty, particularly for large exits and cases where refunds are pending, as substance will be a key factor.
The key takeaway is that treaty benefits now depend not only on having the correct documents like a TRC but also on demonstrating real business substance and genuine intent.
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