L’Authority for Advance Rulings indiana e il rinnovato approccio di tipo look through nell’applicazione dei benefici convenzionali previsti dall’art. 13 del DTAA India-Mauritius (nota alla decisione della Authority for Advance Ruling (AAR) 17 febbraio 2020, Bid Services Division (Mauritius) Ltd, In re ([2020] 114 taxmann.com 434 (AAR – Mumbai)))

In its recent ruling in the matter of Bid Services Division (Mauritius) Ltd, the India’s Authority for Advance Rulings denied a capital gains tax exemption under the India-Mauritius Tax Treaty to a Mauritian entity on the sale of its Indian investment. As per Article 13 of the DTAA (prior to the 2016 amendment) capital gains arising to a Mauritian resident from the sale of shares of an Indian company will be taxable in Mauritius only. The Authority looked through the structure of the transaction and, treating the entity as a conduit company created for routing funds to the South African holding company, ruled that the dominant purpose of the entity was to avoid taxation in India.