Bid Services Division (Mauritius) Limited Vs Authority for Advance Ruling (Income Tax) (Bombay High Court)
The petitioner, Bid Services Division (Mauritius) Limited (BSDM), challenged the ruling dated 10 February 2020 by the Authority for Advance Rulings (AAR), which denied it the benefit of the India–Mauritius Double Taxation Avoidance Agreement (DTAA) in relation to capital gains arising from the transfer of shares of Mumbai International Airport Limited (MIAL).
BSDM, incorporated in Mauritius in August 2005, is a wholly owned subsidiary of Bid Services Division (Proprietary) Limited, South Africa, with Bidvest Group Limited as the ultimate holding company. BSDM holds a Category-I Global Business Licence from Mauritius and a Tax Residency Certificate (TRC) confirming it as a Mauritian tax resident. It has no business operations or permanent establishment in India.
In 2004, the Airports Authority of India (AAI) invited expressions of interest for the modernization of Mumbai and Delhi airports. The GVK-SA Consortium, comprising GVK Industries Ltd. and SA Airport Operators (a joint venture of Airports Company South Africa (ACSA), Old Mutual Life Assurance Co. South Africa, and Bidvest), submitted its expression of interest in July 2004. After being selected as a successful bidder in February 2006, Mumbai International Airport Limited (MIAL) was incorporated in March 2006.
