InvestorQ : What is the tax implication for Holcim when it sells the stake in Ambuja Cements to Adani group?
Anamika Sodhani made post

What is the tax implication for Holcim when it sells the stake in Ambuja Cements to Adani group?

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Angel dcosta answered.
2 months ago
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On the subject of capital gains tax on the sale, what we have is an opinion given by the legal counsel of Holcim that capital gains tax would not be applicable in this case. That is because, the deal is being routed through an offshore Mauritius entity. Hence, as per the clarification provided by the government in the cases of Cairn Energy PLC and Vodafone PLC, the capital gains would be exempted for the sellers of Ambuja Cements and ACC to Adani group.

It may be recollected that Holcim will sell 63.3% in Ambuja Cements and 4.48% stake in ACC to the Adani family through the Mauritius registered entity. Holcim legal counsel has concluded that there would be no capital gains levied on the gains made, although the CBDT has not given any clarification on this front. The existing double taxation avoidance agreement (DTAA) signed between India and Mauritius, allows capital gains without taxes.

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