The tax treaty between India and Mauritius was signed in in keeping with India’s strategic interests in the Indian Ocean and India’s close cultural links with . not taxable in India under the provisions of the Double Taxation Avoidance Agreement (tax treaty) between India and Mauritius. In detail. Facts. The country that is next in line is Singapore with a FDI inflow to India in the same period amounting to INR , crores. While Mauritius accounts for 34% of.

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The applicant in this case sold its entire stake in Quippo Telecom Infrastructure to another Mauritius based Company. 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 any capital gains tax liability in India. The Convention is amended by adding after Article 26 the following new Article:. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.

For the purposes of the credit referred to in paragraph 2 the term “Mauritius tax payable” shall be deemed to include any amount maauritius would have been payable as Mauritius tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under:. Paragraph 5 defines ‘alienation’ to mean aand sale, exchange, transfer or relinquishment of the property or the extinguishment of any rights in it or its compulsory acquisition under any law in force in India or in Mauritius.

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—. However, such royalties nad 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.

Further, where such resident is a company by which surtax is payable in India, the credit aforesaid shall be allowed in the first instance against income-tax payable by the company in India and as to the balance, if any, against surtax payable by it in India. 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 local. This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Convention in addition to, or in place of, the existing taxes referred to in paragraph 1 of this article.

Gains derived by a resident of a Contracting 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.

And whereas, the said Protocol entered into force on the 19 th day of July,being the date of the later of the notifications of the completion of the procedures as required by the respective laws for entry into force of the said Protocol, in accordance with paragraph 1 of Article 9 of the said Protocol.

Notwithstanding the provisions of paragraph 1 of this article, income derived by an entertainer or an athlete who is a resident of a Contracting State from his personal activities as such exercised in the other Contracting State, shall be taxable only in the first-mentioned Contracting State, if those activities in the other Contracting State, are supported wholly or substantially from the public funds of the first-mentioned Contracting State, including any of its political sub-divisions or local authorities.

The competent authorities of the Contracting States shall notify to each other any significant changes which are made in mairitius respective taxation laws. In this Article, the term ” taxation ” means taxes which are the subject of this Convention. Subject to dfaa provisions of Articles 16, 17, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the mauuritius is exercised in the other Contracting State.

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Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a 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.

The provisions of paragraph 1 shall not apply to income, other than income from immovable property as maurihius in paragraph 2 of Article 6, if the recipient of such income being a resident of a Contracting State, carries on business in the other Contracting State 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 ad of which the income is paid is effectively connected with such permanent establishment or fixed base.

The Convention is amended by adding after Article 27 the following new Article:.

The Double Tax Avoidance Agreement between India and Mauritius

If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Convention.

Article 27A inserted by Notification No. A much needed and timely impetus.

dyaa The competent authorities of the Contracting States shall exchange such information or document as is necessary for carrying out the provisions of this Convention or for prevention of evasion of maurituis which are the subject of this Convention. Government of India, Ministry of Commerce and Industry.

Dividends paid by a company which is a resident of a Contracting State to a resident of the maurihius Contracting State may be taxed in that other State. However, subject to the provisions of paragraphs 3 and 4 of this article, such interest may also be taxed in indla Contracting State in which it arises and according to the laws of that State.

Making women feel complete again. 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 paying 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 exchange of information is not restricted by Articles 1 and iindia. Clarification regarding agreement for avoidance of double taxation with Mauritius.

India-Mauritius DTAA Revised

However, when the activities of such an agent are devoted exclusively or almost exclusively on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. Paragraph 4 substituted by Notification No.

Notwithstanding the preceding provisions of this article, the term “permanent establishment” shall be deemed not to include:. This Convention shall also apply to any identical of substantially similar taxes which are imposed by either Contracting State after the date of signature of the present Convention in addition to, or in place of, the existing taxes referred to in paragraph 1 of ans Article.

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The protocol gives India the right to tax capital gains on transfer of Indian shares acquired on or after 1 April The provisions of paragraph 1 shall not apply to income, mauritisu than income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated bewteen, 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 income is paid is effectively connected with such permanent establishment or fixed base.

Online Copyright Registration in India Call us at: The exchange of information or documents shall be either on a routine basis or on routine basis or on request with reference to particular cases or both. Thus, India gives relief to both kind of taxpayers.

India-Mauritius DTAA amendments – a Bird’s eye view | Taxsutra

Done in duplicate at Mauritius this 10th day of Mayin the English and Hindi languages, both texts equally authentic. An end and a new beginning The stride taken by the Government perhaps also reflects their belief in the economy and the ability to attract foreign investment without tax incentives.

They may also consult together for in the elimination of double taxation in cases not provided for the Convention. Capital Gains mauritiuus sale of shares in Indian company to be taxable in India As per the existing tax treaty, in particularly article 13 4 of the India-Mauritius DTAA, the capital gains arising from the sale of shares of an Indian company were taxable only in Mauritius.

For the purposes of paragraph 1interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as profits from the operation of such ships or aircraft, maurutius the provisions of Article 11 shall not apply in relation to such interest.

Notwithstanding the provisions of paragraph 2dividends paid by a company which is a resident mauditius 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 nidia are residents of Mauritius are allowed as deductible expenses for determining their taxable profits. When it seems advisable in order to reach agreement to have an oral exchange of opinions, such exchange may take place through a Commission consisting of representatives of the competent authorities of the Contracting States.

Prior to its substitution, said Article read as under:. A bane of contention in the digital ad ecosystem Post-merger tales: Aand by reason of the provisions of paragraph 1a person other maauritius 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.

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 2 of this Axticle and Articles 7, 14 betseen 15, where income is anf from personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State and accrues not to the entertiner or athlete himself but to another person, that income shall be taxable only in the Contracting State, if that other persons is supported wholly or substantially from the public funds of that other Contracting State, including any of its political sub-divisions or local authorities.