AAR order on Tiger Global to spur taxmen to asses entity location: Experts

The AAR, in its ruling, said the investment was routed through the Mauritius entity only to benefit from the India-Mauritius tax treaty while the 'head and brain' of the company was in the US

The AAR's recent judgment on Tiger Global will give ammunition to tax officers to go beyond the legal form of an entity claiming tax exemption under bilateral treaties and assess its management and control, experts said.

The Authority for Advance Rulings (AAR) in a recent order rejected Tiger Global's application for exemption from payment of capital gains tax on sale of its stake in Flipkart to Walmart in 2018.

US-based PE firm Tiger Global had invested in Flipkart through its Mauritius arm.

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