India: Capital gains on indirect share transfer not taxable under Singapore treaty (tribunal decision)
Recent direct and indirect tax developments in India
The Mumbai Tribunal held that short-term capital gain recognized by a Singapore tax resident from its sale of shares in a Singaporean company that owned shares in an Indian company was not taxable in India under the India-Singapore income tax treaty.
The tribunal rejected the tax authority’s arguments that the Singaporean company was a shell or conduit company set up for tax avoidance.
The case is: eBay Singapore Services Private Limited v. DCIT
Read an October 2025 report prepared by the KPMG member firm in India, which includes summaries of other indirect and indirect tax developments.