There is a visible cumulative shift in India’s tax and regulatory posture on cross-border M&A, driven by recent judicial rulings treaty scrutiny, expanded substance tests, and a more assertive anti-avoidance lens. Together, these developments signal that structural form, legal approvals, and treaty residence alone may no longer provide comfort unless backed by demonstrable commercial depth, continuity and substance.
While the intent to protect the tax base and align with global standards is understandable, the emerging trajectory does introduce a degree of uncertainty for investors who rely on predictability in structuring capital flows, deals, and re-organisations. The need of the hour is a calibrated balance where substance is respected without diluting transactional certainty, so that India remains both fiscally secure and structurally investible.
I explore the cumulative effect of 4 rulings viz., Tiger Global, Hinduja, Binny Bansal and Jindal Equipment, on the M&A space and cross border transactions in an article published on moneycontrol.com