Jane Street Explores Singapore Tax Treaty to Challenge ₹8,000 Crore Demand in India
मुख्य बातें
- •Jane Street is considering the 'Mutually Agreed Procedure' (MAP) under the India-Singapore DTAA to resolve a ₹8,000 crore tax demand from the Indian I-T Department.
- •The tax dispute involves the application of the 'Principal Purposes Test' (PPT) and potential transfer pricing issues, with SEBI alleging price manipulation by the firm’s entities.
- •MAP offers a faster alternative to litigation, with authorities aiming to resolve disputes within 24 months and allowing taxpayers to seek suspension of demands during the process.
- •The case reflects broader regulatory scrutiny on FPIs and their tax structures in India, particularly in equity derivatives trading.
Mumbai, [Date]: Jane Street, a prominent American high-frequency trading firm, is exploring a diplomatic route through the Singapore government to resolve a major tax dispute with Indian authorities. The firm, which has faced scrutiny from the Income Tax (I-T) Department over claimed tax exemptions, is reportedly preparing to initiate the 'Mutually Agreed Procedure' (MAP), a dispute resolution mechanism under the India-Singapore Double Taxation Avoidance Agreement (DTAA). According to two sources familiar with the matter, Jane Street is considering this approach to address tax demands estimated at approximately ₹8,000 crore, including interest, for one of the years under review.
