Finally, after about 33 years of the India-Mauritius tax treaty coming into force, the treaty has now been amended. What is the key feature of the amendment?. Recent news of India and Mauritius signing a Protocol to amend their 33 year old tax treaty caused seismic changes in the tax world. Though not completely. India and Mauritius have concluded negotiations with respect to the double tax avoidance agreement (India-Mauritius DTAA) between the two countries.
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Copyright Registration ph no: Nothing in this Article shall be construed as creating or providing any right to such proceedings before any court or administrative body of the other Contracting State. Comprehensive Agreements Agreement for avoidance of double taxation and prevention of inida evasion with Australia Whereas the annexed Agreement between the Government of the Republic of India and the.
India-Mauritius DTAA amendments – a Bird’s eye view | Taxsutra
Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. Where, by reason of a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this article shall apply only to the last-mentioned amount.
Defence Defence National International Industry. Therefore, any resident of Mauritius deriving income from alienation of shares of Indian companies will be liable to capital gains tax only in Mauritius as per Mauritius tax law and will not have indja capital gains tax liability in India. Bringing the bazaars home.
Clarification regarding agreement for avoidance of double taxation with Mauritius 1. Taxability of Interest earned by banks Other changes agreed to between the countries pertain to taxation of interest income from India earned by banks based in Mauritius.
Limited Agreements Agreement for avoidance of double taxation of income of enterprises operating aircraft with Afghanistan Whereas the Government of India and the Government of Afghanistan have.
However, investments made during the transitionary period April to March will be subject to taxation in India, albeit at reduced rates. Other changes agreed to between the countries pertain to taxation of interest income from India earned by banks based in Mauritius.
The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the fees for technical services being a resident of a Contracting State, carries on business in the other Contracting State in which the fees for technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the fees for technical services are paid is effectively connected with such permanent establishment or fixed base.
Gains derived by a resident of a Contract State from the alienation of any property other than those mentioned in paragraphs 12 and 3 of this article shall be taxable only in that State. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.
Article 13 Capital Gains of the Convention shall be amended with effect from 1.
Prior to its substitution, said Article read as under: Sub-paragraph c omitted by Notification No. The competent authorities of the Contracting States shall notify to each other any significant changes which are made in their respective taxation laws.
That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provision of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owned by a person who has a right to prevent its collection.
In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a dtaaa.
Crude oil prices to direct sugar prices in Never miss a great news story! That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State.
India-Mauritius tax treaty: An end and a new beginning
Notwithstanding the provisions of articles 14 and 15, income derived by public entertainers such as theatre, motion picture, radio or television artistes and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised. The Government mairitius the Republic of India and the Government of Mauritius, desiring to conclude a Convention for the avoidance of double maurtiius and the prevention of fiscal evasion staa respect to taxes on income and capital gains and for the encouragement of mutual trade and investment: Existing investments will be grandfathered.
A professor, teacher and research scholar who is or was a resident of one of the Contracting States tdaa before visiting the other Contracting State at the invitation of that other Contracting State or of a university, college, school or other approved institution in that other Contracting State for the purpose of teaching or engaging in research, or both, at the university, college, school or other approved institution, shall be exempt from tax in that other Contracting State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other Contracting State.
Gains from the alienation of immovable property, as defined in paragraph 2 of article 6, may be taxed in the Inddia State in which such property is situated.
Notwithstanding the provisions of paragraph 2dividends paid by a company which is a resident of Mauritius to a resident of India may be taxed dttaa Mauritius and according to the laws of Mauritius, as long as dividends paid by companies which are residents of Mauritius are allowed as deductible expenses for determining their taxable profits. Your Reason has been Reported to the admin.
Singapore, Mauritius fight for relevance after DTAA amendments in – The Economic Times
Paragraph 5 defines ‘alienation’ to mean the sale, exchange, transfer or relinquishment of the property or makritius extinguishment of any rights in it or jauritius compulsory acquisition under any law in force in India or in Mauritius. The competent authorities dta the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine basis.
Concluding remarks The signing of the Protocol is certainly a decisive move by the Government of India which puts inria rest more than a decade long controversy around the Mauritius treaty. Company Corporate Trends Deals. Article 13 of the Convention deals with taxation of capital gains and it has five paragraphs. Notwithstanding the provisions of paragraph 1 of this article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned State, if—.
For the purposes of the credit referred to in paragraph 4the term “Indian tax payable” shall be deemed to include any amount by which tax has been reduced by the special incentive measures under—.
India, Mauritius set to hold fresh talks on DTAA amendments
A bane of contention in the digital ad ecosystem Post-merger tales: The term “permanent establishment” shall include—. While the golden tap kept flowing, apprehensions on round tripping of money by Indians via Mauritius continued even as successive Governments made efforts to renegotiate the treaty.
In the application of the provisions mauditius this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws in force of that Contracting State relating to the areas which are the subject of this Convention. Notwithstanding maurittius provisions of paragraph 2 of this article and articles 7, 14 and 15, maurituis income is derived from personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State and accrues not to the entertainer or athlete himself but to another person, that income shall be taxable only in the Contracting State, mmauritius that other person is supported wholly or substantially from the public funds of that other Contracting State, including any ineia its political sub-divisions or local authorities.
Article 22 Other Income of the Convention shall be amended by inserting after paragraph 2 the following new paragraph:. Desiring to amend the Convention between the Government of the Republic of India and the Government of Mauritius for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, and for the encouragement of mutual trade and investment, signed at Port Louis on 24 th August, hereinafter referred to as “the Convention”.
As India opened the doors of its economy to foreign investment inMauritius became a favourite jurisdiction for channelling investments into India.