India: Cross-border share reorganisation | KPMG | BE

India: Cross-border share reorganisation, transfer pricing rules not triggered

India: Cross-border share reorganisation

India’s Authority for Advance Rulings concluded that a proposed transfer of shares of an Indian company by a Mauritius based company to a Singapore based company, under a group reorganisation, is not taxable under the India-Mauritius income tax treaty. The proposed transfer of shares did not amount to a plan to avoid payment of taxes in India, and India’s transfer pricing rules were not triggered because the transaction was not taxable in India.


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Read a January 2016 report [PDF 350 KB] prepared by the KPMG member firm in India: Transfer of shares of an Indian company by a Mauritius based company to a Singapore based company under group reorganisation is not taxable under the India-Mauritius tax treaty and not a tax avoidant transaction

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