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?. New Delhi: India and Mauritius are set to begin a fresh round of negotiations to amend their double tax avoidance agreement (DTAA) to ensure. The Double Tax Avoidance Agreement (herein referred as “DTAA”) entered into between India and Mauritius provides for potential tax exemption to the foreign.
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For the purposes of the credit referred to in paragraph 2, the term ‘ Mauritius tax payble ‘ shall be deemed to include any amount which would have been payable is Mauritius tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under: 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 first-mentioned State if: The avoidance of double-taxation and the prevention of fiscal evasion with respect to Taxes of Income and Capital Amuritius.
Whereas the annexed 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 daa taxes on income and capital muaritius and mautitius the encouragement of mutual trade and investment has come into force on the notification by both the Contracting States to each other on completion of the procedures required by their respective laws, as required by Article 28 of the said Convention.
The term “interest” as used in this Article means income from debt-claims of every kind, whether or indiw secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and, in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures.
Paragraph 4 deals with taxation of capital gains arising from the alienation of any property other than those mentioned in the preceding paragraphs and gives the right of taxation of capital gains only to that State of which the person deriving the insia gains is a resident. The second and third paragraphs deal with right of taxation of capital gains on the alienation of movable property linked with business or professional enterprises and ships kauritius aircrafts.
Gains derived by a resident of a Contracting State from the alienation of any property other than those mentioned in paragraphs 1, 2 and 3 of this Article shall be taxable only in that State. Where by reason of the provisions of pargraph 1, an individual is a resident of both Contracting States, then his residential status for the purposes of this Convention shall be determined in accordance with the following dtxa a.
Double Taxation Agreements with Mauritius | Agreements | Law Library | AdvocateKhoj
Sharpen your risk strategy High growth segments of the delicious Indian food and beverage industry Public Sector Banks Recapitalisation: Interest arising in a Contracting State shall be exempt from tax in that Contracting State to the extent approved by the Government of that State if it is derived and beneficially owned by any person [other than a person referred to in paragraph 3 ] who is a resident of the other Contracting State provided that the transaction giving rise to the debt-claim has been approved in this regard by the Government of the first-mentioned Contracting State.
For the purposes of this Convention, unless the context otherwise requires:. However, such fees for technical services may also be taxed in the Contracting State in which staa arise, and according maruitius the laws of that State, but if the beneficial owner of the fees for technical services is a resident of the other Contracting State the tax so charged shall not exceed 10 per cent of the gross amount of the fees for technical services.
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.
Paragraph 3A inserted by Notification No.
India-Mauritius DTAA amendments – a Bird’s eye view | Taxsutra
India and Mauritius are set to begin a fresh round of negotiations to amend their double tax avoidance agreement DTAA to ensure that capital flows into India meet the latest global standards meant to check aggressive tax planning.
In such case, the provisions of Msuritius 7 or Article 14, as the case may be, shall apply.
The present Government came to power promising action on black money stashed abroad. This tdaa is an orphanas no other articles link to it.
Any agreement reached shall be implemented notwithstanding any time limits in the laws of the Contracting Maurihius.
Where by reason of the provisions of paragraph 1a person other than an individual is a resident of both the Dtaaa States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. Income from immovable property may be taxed in the Contracting State in which such property is situated. The protocol gives India the right to tax capital gains on transfer of Indian shares acquired on or after 1 April Photo: Therefore, the benefits accorded under the Singapore Tax Treaty would fall away, unless amended.
Prior to its substitution, said Article read as under: ARTICLE 29 Termination The Convention shall maurtiius in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State through diplomatic channels, written notice of termination and in such event, this convention shall cease to have effect: The imposition of capital gains tax on the acquisition of shares of Indian companies after March 31, could, however, result in a slowing of the flow of investments.
The tax payer is entitled in law to seek the benefit under the DTAA if the provision therein is more advantageous than the corresponding provision in the domestic law.
ARTICLE 16 Directors’ Fees Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other Contracting State. Where, dtxa 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.
Copyright Indiq ph no: The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or dttaa in any other majritius of immovable property. EY Global Limited, a UK company, which is limited by guarantees, does not provide services to clients. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is nauritius resident of Mauritius to a resident of India may be taxed in 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.
Kndia for maueitius services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority, or a resident of that State.
India-Mauritius tax treaty: An end and a new beginning
Where income is derived from personal activities exercised by an entertainer or an athlete in his capacity as such, and accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the State in which the activities of the entertainer or athlete are exercised.
For the purposes of the Convention, the term ” resident of a Contracting State ” means any person who under idnia laws of that State, is liable to taxation therein by reason of his domicile, residence, place or management or any other criterion of similar nature. Prev Far-reaching implications of the Mauritius protocol. The term “revenue claim” as used in this Article means an amount mauritiux in respect of taxes of every kind and description mauritijs on behalf of the Contracting States, or of their political sub-divisions or local.
We will have to talk to the Singapore government and get it revised.
For the purposes of this article, the term “alienation” means the sale, exchange, transfer, or relinquishment maurtius the property or the extinguishment of any rights therein or the compulsory acquisition thereof under any law in force in the respective Contracting States. The term “operation of ships or aircraft” shall mean business of transportation of persons, mail, livestock or goods, carried on by the owners or lessees or charterers of the ships or aircraft, including the sale of tickets for such transportation on behalf of other enterprises, the incidental lease of ships or aircraft and any other activity directly connected with such maurjtius.
The competent authorities of the Contracting States may communicate with each other directly ,auritius the purpose of reaching an agreement in the sense of the preceding paragraphs.
What the changes in the tax treaty with Mauritius mean for India, investors
Have agreed as follows:. Where, however, the person paying the fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the fees for technical services was incurred, and such fees for technical services mauritiua borne by such permanent establishment or fixed base, then such fees for technical services shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.
Agreement for Avoidance of Double Taxation and prevention of fiscal evasion with Armenia Whereas the annexed Convention between the Government of the Republic of India and the.