The Mumbai Income Tax Appellate Tribunal (ITAT) has ruled in favor of eBay Singapore Services Private Ltd, granting it the benefit of the India–Singapore Double Taxation Avoidance Agreement (DTAA) on capital gains arising from the sale of shares in Flipkart Singapore.
The tribunal allowed exemption on short-term capital gains (STCG) of ₹2,225.91 crore earned by eBay Singapore on the sale of Flipkart Singapore shares to FIT Holding, a Singapore-based company. ITAT noted that, under Article 13(5) of the India–Singapore DTAA, such gains fall exclusively within the taxing rights of the State of residence of the alienator—Singapore—and are not taxable in India.
The Revenue had contended that eBay Singapore’s management and control were effectively situated in the USA, and therefore, treaty be