Mumbai, Jan. 28 -- The Supreme Court (SC) judgment on Tiger Global, upholding capital gains tax on its Flipkart share sale, has opened the door for a review of similar past investments by other entities. This is prompting companies to consider insurance and legal measures to guard against potential tax reassessments and penalties, experts said.
What has emerged from the SC judgement in the Tiger Global case is that a tax residency certificate (TRC) is by itself no longer conclusive evidence for claiming tax exemption under a Double Tax Avoidance Agreement (DTAA). The SC has said that merely relying on an entity in a jurisdiction with which India has a DTAA is not sufficient. In such cases, Indian tax authorities have the right to lift th...
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