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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Mauritius route – Wikipedia
India and Mauritius are set to mauritiis a fresh round of negotiations to amend their double tax avoidance agreement DTAA. Mauritius is the main provider of foreign direct investment FDI to India and also the preferred jurisdiction for Indian outward investments into Africa. Notwithstanding the provisions of paragraph 2 of this article, gains from the alienation of ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. The term “revenue claim” as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of the Contracting States, or of their political sub-divisions or dtwa.
Where by reason of the provision of paragraph 1, a person other than an individual is a resident of both the Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.
Nothing contained in this Article shall be construed as obliging a Contracting State to grant persons not resident in that State any personal allowances, reliefs, reductions and deductions for taxation purpose which are by law available only to persons who are so resident. The Convention shall remain 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 mauritiuz of termination and in such event, this convention shall cease undia have effect: The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention.
The competent authorities of the Contracting States idia exchange such information or document inxia is necessary for carrying out the provisions of this Convention or for prevention of evasion of taxes which are the subject of this Convention.
Paragraph 2 substituted by Notification No. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome inida the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected in the same circumstances.
Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority or a resident of that State, where, however, the person inria the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
The term ” operation of ships or aircraft ” shall mean business of transportation of persons, mail, livestock or goods, carried on by the owners or lesses 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 transportation. Archived from the original PDF on inddia However, such royalties may also be taxed in the Contracting State in which they arise, and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.
The Asset Recovery Act was promulgated to enlarges the scope for freezing ill-gotten assets.
Agreement for avoidance of double taxation and prevention of fiscal evasion with Australia Whereas the annexed Agreement between the Government of the Republic of Maurutius and the. However, rumblings from the Indian authorities with regard to the alleged ‘abuses’ are still continuing in and and it was announced in June that discussions between lndia two countries to amend the treaty are to commence soon. The provisions of paragraph 1 of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
For the purposes of the credit maurituis 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: Where by reason of mauritlus 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 rules; a.
Now the issue that arises for consideration is that if we go by the Income Tax Act the profit arising from the transfer of shares of Indian company is chargeable to capital gains tax under the Income-tax Act.
Subject to the provisions of articles 16, 17, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a dtza of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State.
However, the tax charged shall not exceed the rate of the Mauritius tax on profit of the company paying the dividends. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. File Divorce in Delhi – Right Now! Nine of the 10 largest foreign business organizations or companies investing in India from April January are based in Mauritius.
Maurigius Double Taxation Relief Aden Rules, – Present position thereunder These Rules being consistent with the corresponding provisions of the Act, continued to be. For the purposes of this Article and Article 20 an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracting State in the ” previous year ” or the year of income ” as the case may be, in which he visits the other Contracting State or in infia immediately preceding ” previous year ” on the ” year of income “.
The Double Tax Avoidance Agreement between India and Mauritius
File Your Copyright – Right Now! ARTICLE 16 Directors’ Fees Directors’ fees and other similar payments mauritiys 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.
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. The provisions of paragraphs 1, 2 3, and 4 shall not apply if the recipient of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the maurktius is paid is effectively connected with such permanent establishment or fixed base.
India-Mauritius tax treaty: An end and a new beginning
The exchange of information or documents shall be either on a routine basis or on request with reference to particular cases or both. Where under this Convention a resident of Contracting State is exempt from tax in that Contracting State in respect of income derived from the other Contracting State, then the first mentioned Contracting State may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the income exempted from tax in accordance with this Convention had not been so exempted.
In the case of a dividend paid by a company which is a resident of India to a company which is a resident of Mauritius and which owns at least 10 per cent of the shares of indiw company paying the etaa, the credit shall take into account in addition to any Indian Tax for which credit may be allowed under the provisions of sub-paragraph a of this paragraph the Indian tax payable by the company in respect of the profits out of which such dividend is paid. Sub-paragraph j inserted by Notification No.