India: Capital gains on indirect share transfer not taxable under Singapore treaty (tribunal decision)

Recent direct and indirect tax developments in India

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october 31, 2025

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.

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