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Indian Authority for Advance Rulings Denies Grandfathered Beneficial Treatment for Share Sales Under Tax Treaty with Mauritius in Case of Tax Avoidance

|Treaty Development|India-Mauritius
India-Mauritius

The Mumbai Bench of India's Authority for Advance Rulings (AAR) recently issued a ruling on the grandfathering of the beneficial treatment of gains from the alienation of shares under the 1982 India-Mauritius tax treaty. Prior to its amendment by a 2016 protocol, the treaty granted exclusive taxation rights on capital gains to the country of residence of the seller and did not include a limitat…

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