@Sulabh Gajjar - Thanks a ton for such a detailed answer. I had this approach in mind but I was wondering if there could be a better way, so kept this as my last option.
Like you suggested, created 2 selectors for left and right tabs, instead of creating new drawables, I wrote shapes inside selector itself and created 2 separate files to store different corner radius as suggested by https://stackoverflow.com/a/12952591/1020809. Currently its working for me, but I'll wait few more days incase someone comes up with a more generic way, if nobody shows up, I'll mark your answer as accepted. Thanks again... :)
Using your approach, here's what I did to get it running
Layout
<LinearLayout
android:layout_width="match_parent"
android:layout_height="wrap_content"
android:layout_marginBottom="7dp"
android:layout_marginLeft="10dp"
android:layout_marginRight="10dp"
android:layout_marginTop="7dp"
android:background="@drawable/custom_tab_background"
android:orientation="horizontal" >
<TextView
android:id="@+id/issue_tab"
android:layout_width="wrap_content"
android:layout_height="wrap_content"
android:layout_weight="1"
android:background="@drawable/custom_tab_selector_left"
android:fontFamily="@raw/roboto_bold"
android:gravity="center_horizontal"
android:padding="5dp"
android:text="Issues"
android:textAllCaps="true"
android:textColor="@color/custom_tab_text_color_selector"
android:textSize="14sp" />
<!--
<View
android:layout_width="1dp"
android:layout_height="match_parent"
android:background="@color/custom_tab_selected" />
-->
<TextView
android:id="@+id/activity_tab"
android:layout_width="wrap_content"
android:layout_height="wrap_content"
android:layout_weight="1"
android:background="@drawable/custom_tab_selector_right"
android:fontFamily="@raw/roboto_bold"
android:gravity="center_horizontal"
android:padding="5dp"
android:text="Activities"
android:textAllCaps="true"
android:textColor="@color/custom_tab_text_color_selector"
android:textSize="14sp" />
</LinearLayout>
custom_tab_background.xml
<?xml version="1.0" encoding="utf-8"?>
<shape xmlns:android="http://schemas.android.com/apk/res/android"
android:dither="true"
android:shape="rectangle" >
<stroke
android:width="2dp"
android:color="@color/custom_tab_selected" />
<corners android:radius="5dp" />
<solid android:color="#FFFFFFFF" />
<padding
android:bottom="2dp"
android:left="2dp"
android:right="2dp"
android:top="2dp" />
</shape>
dimens.xml
<dimen name="custom_tab_layout_radius">4dp</dimen>
custom_tab_selector_left.xml
<?xml version="1.0" encoding="utf-8"?>
<selector xmlns:android="http://schemas.android.com/apk/res/android">
<item android:state_selected="true">
<shape xmlns:android="http://schemas.android.com/apk/res/android">
<solid android:color="@color/custom_tab_selected" />
<corners android:bottomLeftRadius="@dimen/custom_left_tab_bottomLeftRadius"
android:bottomRightRadius="@dimen/custom_left_tab_bottomRightRadius"
android:topLeftRadius="@dimen/custom_left_tab_topLeftRadius"
android:topRightRadius="@dimen/custom_left_tab_topRightRadius" />
</shape>
</item>
<!-- selected -->
<item android:state_pressed="true">
<shape xmlns:android="http://schemas.android.com/apk/res/android">
<solid android:color="@color/custom_tab_pressed" />
<corners android:bottomLeftRadius="@dimen/custom_left_tab_bottomLeftRadius"
android:bottomRightRadius="@dimen/custom_left_tab_bottomRightRadius"
android:topLeftRadius="@dimen/custom_left_tab_topLeftRadius"
android:topRightRadius="@dimen/custom_left_tab_topRightRadius" />
</shape>
</item>
<!-- pressed -->
<item android:state_focused="true">
<shape xmlns:android="http://schemas.android.com/apk/res/android">
<solid android:color="@color/custom_tab_pressed" />
<corners android:bottomLeftRadius="@dimen/custom_left_tab_bottomLeftRadius"
android:bottomRightRadius="@dimen/custom_left_tab_bottomRightRadius"
android:topLeftRadius="@dimen/custom_left_tab_topLeftRadius"
android:topRightRadius="@dimen/custom_left_tab_topRightRadius" />
</shape>
</item>
<!-- focused -->
<item>
<shape xmlns:android="http://schemas.android.com/apk/res/android">
<solid android:color="@color/custom_tab_normal" />
<corners android:bottomLeftRadius="@dimen/custom_left_tab_bottomLeftRadius"
android:bottomRightRadius="@dimen/custom_left_tab_bottomRightRadius"
android:topLeftRadius="@dimen/custom_left_tab_topLeftRadius"
android:topRightRadius="@dimen/custom_left_tab_topRightRadius" />
</shape>
</item>
<!-- default -->
</selector>
/res/values/custom_tab_corners.xml
<?xml version="1.0" encoding="utf-8"?>
<resources>
<!-- LEFTMOST TAB -->
<dimen name="custom_left_tab_topLeftRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_left_tab_bottomLeftRadius">0dp</dimen>
<dimen name="custom_left_tab_topRightRadius">0dp</dimen>
<dimen name="custom_left_tab_bottomRightRadius">@dimen/custom_tab_layout_radius</dimen>
<!-- RIGHTMOST TAB -->
<dimen name="custom_right_tab_topLeftRadius">0dp</dimen>
<dimen name="custom_right_tab_bottomLeftRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_right_tab_topRightRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_right_tab_bottomRightRadius">0dp</dimen>
</resources>
/res/values-v12/custom_tab_corners.xml
<resources>
<!-- LEFTMOST TAB -->
<dimen name="custom_left_tab_topLeftRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_left_tab_bottomLeftRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_left_tab_topRightRadius">0dp</dimen>
<dimen name="custom_left_tab_bottomRightRadius">0dp</dimen>
<!-- RIGHTMOST TAB -->
<dimen name="custom_right_tab_topLeftRadius">0dp</dimen>
<dimen name="custom_right_tab_bottomLeftRadius">0dp</dimen>
<dimen name="custom_right_tab_topRightRadius">@dimen/custom_tab_layout_radius</dimen>
<dimen name="custom_right_tab_bottomRightRadius">@dimen/custom_tab_layout_radius</dimen>
</resources>