The Indian Authority for Advance Rulings (AAR) delivered a ruling dated 1 October 2007 (recently published), in the case of Timken France SAS (2007) 294 ITR 513 (AAR), that a foreign company was entitled to the concessional tax rate of 10% on long-term capital gains, earned on the sale/transfer (both terms used inter-changeably) of shares in an Indian company.
Facts
The Applicant (i.e. Timken France SAS), was a French entity and a non-resident compan…