https://www.taxtmi.com/caselaws?id=215477 Mauritian sellers were found entitled to India-Mauritius treaty protection on the available facts, so the capital gains from the share transfer were not chargeable to tax in India in the sellers' hands. The challenge based on treaty shopping, indirect control, beneficial ownership and alleged non-disclosure was not accepted on the material before the AAR. The earn-out linked to the share purchase was treated as part of the full value of consideration for capital gains computation. Because the transfer gains were not taxable in India, no withholding obligation arose for the purchaser under section 195. No ruling was given on section 115JB, though the AAR indicated a view that it would apply to a foreign company. en-us Tue, 31 Jul 2012 00:00:00 +0530 Wed, 12 Dec 2012 12:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215477 Mauritian sellers were found entitled to India-Mauritius treaty protection on the available facts, so the capital gains from the share transfer were not chargeable to tax in India in the sellers' hands. The challenge based on treaty shopping, indirect control, beneficial ownership and alleged non-disclosure was not accepted on the material before the AAR. The earn-out linked to the share purchase was treated as part of the full value of consideration for capital gains computation. Because the transfer gains were not taxable in India, no withholding obligation arose for the purchaser under section 195. No ruling was given on section 115JB, though the AAR indicated a view that it would apply to a foreign company. Case-Laws Income Tax Tue, 31 Jul 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215477