The sale of Tiger Global’s $1.6 billion stake in Flipkart at the time of the Walmart-Flipkart acquisition deal in 2018 is subject to tax, India’s Supreme Court said on Thursday in what is seen as a landmark ruling on the use of international tax treaties by companies.
Keenly watched by foreign investors, the legal dispute relates to how Tiger Global used the India-Mauritius tax treaty to claim tax exemption, and New Delhi took sharp objection to it. The decision will have an impact on how India applies tax principles in cross-border deals.
This is a developing story. more to come.