India’s Authority for Advance Rulings has, recently, rejected the nil withholding tax applications made by US-based hedge fund, Tiger Global Management’s three Mauritius-based companies, in respect of capital gains arising out of the $16-billion Walmart-Flipkart deal in May 2018. Tiger Global was one of the prominent shareholders in India’s homegrown e-commerce major, Flipkart.
The issue once again seems to be a lack of commercial substance at the Mauritius level.
We are waiting for a copy of the AAR order, and quite clearly, the last word on the subject has not been spoken.