Tiger Global Ruling: India Prioritizes Substance Over Form in Tax Matters

• The Supreme Court's Tiger Global ruling emphasizes commercial substance over documentation for tax purposes, protecting India's tax base.
• The case involved Tiger Global's 2018 exit from Flipkart, triggering indirect transfer provisions due to underlying Indian economic value.
• The Court reaffirmed India's right to examine genuine commercial substance of entities, even with valid Tax Residency Certificates (TRCs).
• The ruling highlights that treaties prevent double taxation, not double non-taxation, and judicial anti-avoidance principles remain crucial.
• Investors must align governance, control, and documentation with commercial reality to manage tax risks and ensure compliance.

Why It Matters: India's Supreme Court ruling on Tiger Global prioritizes commercial substance to protect its tax base and ensure fair taxation.