Tiger Global’s $1.6-billion stake sale in Flipkart at the time of the Walmart-Flipkart acquisition deal in 2018 is subject to tax, the Supreme Court of India said on Thursday in what is seen as a landmark ruling on use of international tax treaties by companies.
Keenly watched by foreign investors, the legal dispute relates to how Tiger Global used the India-Mauritius tax treaty to claim tax exemptions, and New Delhi’s fierce objections to it. The ruling will have implications for how India applies tax principles in cross-border deals.