https://www.taxtmi.com/caselaws?id=211836 AAR examined whether a proposed share buy-back involving a Mauritius shareholder was a colourable device to avoid Indian tax and, on the facts, found it lacked commercial substance and was structured to repatriate accumulated profits without tax on distributed profits. It treated the payment according to its true character as a distribution of profits, making it taxable in India as dividend under the domestic law and treaty framework. Because the remittance was held taxable, the applicant was also required to deduct tax at source on payment to the Mauritius shareholder. en-us Thu, 22 Mar 2012 00:00:00 +0530 Thu, 05 Apr 2012 15:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=211836 AAR examined whether a proposed share buy-back involving a Mauritius shareholder was a colourable device to avoid Indian tax and, on the facts, found it lacked commercial substance and was structured to repatriate accumulated profits without tax on distributed profits. It treated the payment according to its true character as a distribution of profits, making it taxable in India as dividend under the domestic law and treaty framework. Because the remittance was held taxable, the applicant was also required to deduct tax at source on payment to the Mauritius shareholder. Case-Laws Income Tax Thu, 22 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=211836