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.
The competent authorities of the Contracting States shall exchange such information including documents or certified copies thereof as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention.
For the purposes of this article and article 20 an individual shall be deemed to be resident of a Contracting State if he is a 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 the immediately preceding “previous year” or the “year of indiaa.
Two people with knowledge of communications between Delhi and Port Louis, on condition of anonymity, separately said talks to upgrade the DTAA will start soon. mauritisu
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 mauirtius other Contracting State. For the purposes of the credit referred to in paragraph 4.
Think Live Work Play. As we have pointed out, Circular No.
Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing dta independently with the enterprise of which it is a permanent establishment.
In this situation, the impact of the amendment in the Mauritius DTAA on the Singapore DTAA becomes critical — and it is expected that the amended tax regime for Mauritius will be applicable to capital gains for Singapore tax residents too.
This 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 amuritius diplomatic inddia, written notice of termination and, in such event, this Convention shall cease to have effect—.
In case of divergence between the two texts, the English text shall be the operative one. Mauritous provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
One will need to be cautious of the impact of this development on foreign flows, at least in the near term.
Sharpen your risk strategy High growth segments of the delicious Indian food and beverage industry Public Sector Banks Recapitalisation: The term “annuity” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.
This Protocol shall enter into force on the date of the later of these notifications. ARTICLE 29 Termination 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 mauriitus 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: 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.
The competent authorities of the Contracting States shall notify to each other any significant changes which are made mauriius their respective taxation laws. Agreement dtas avoidance of double maufitius of income of enterprises operating aircraft with Afghanistan Whereas the Government of India and the Government of Afghanistan have.
Article 1 Article 5 Permanent Establishment of the Convention shall be amended by inserting in paragraph 2 the following new sub-paragraph: Experts say the Netherlands maurutius emerge as an alternative. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends mauritiks a resident and accordingly to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax dtza charged shall not exceed: The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if dttaa recipient of such income being a resident of a Contracting Mauditius, 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 respect of which the income is paid is effectively connected with such permanent establishment or fixed base.
When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State.
When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. P-Notes are instruments issued by registered foreign institutional investors to overseas investors.
Notwithstanding the provisions of paragraph 2 of this Axticle and Articles 7, 14 and 15, where 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 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.
This well settled principle has been re-stated by the Supreme Court in the case of Union of India vs. Any information or document so exchanged shall be treated as secret but may be disclosed to persons including courts or other authorities concerned with the assessment, collection, enforcement, investigation or prosecution in respect of the taxes which are the subject of this Convention, or to persons with respect to whom the information or document relates.
Article 4 Article 13 Capital Gains of the Convention shall be amended with effect from 1. This case must be presented within three years of the date of receipt of notice of the action which gives rise to taxation not in accordance with the Convention.
Prior to its substitution, said Article read as under:. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident.
For the purpose of paragraph 1″approved institution” means an institution which has been approved in this regard by the competent authority of the concerned Contracting State.
For the purpose of this Article, the term ” Government ” shall include any State Government or local or statutory authority of either Contracting State and, in particular, the Reserve Bank of India and the Bank of Mauritius.
If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes.
Paragraph 3A inserted by Notification No. In such case, the provisions of article 7 or article 14, as the case may be, shall apply.
India-Mauritius tax treaty: An end and a new beginning | Forbes India Blog
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 Inida.
The protocol gives India the right to tax capital gains on transfer of Indian shares acquired on or after 1 April For the purposes of the credit referred to in paragraph 2 the term “Mauritius tax payable” shall be deemed to include any amount which 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:.
This Article shall not apply to income from research if the research is undertaken primarily for muritius private benefit of a specific person or persons.
Any pension paid by the Government of a Contracting State to an individual who is a national of that State, shall be taxable only in indua Contracting State.
The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation: Gains from the alienation of shares acquired on or after 1st April in a company which is resident of a Contracting State may be taxed in that State. 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.
Subject to the provisions of paragraph 3 of this article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
The avoidance of double-taxation and the prevention of fiscal evasion with respect to Taxes of Income and Capital Gains. The fact that a company, which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting State whether through a permanent establishment or otherwise shall not, of itself, constitute either company a permanent establishment of the other.
The Double Tax Avoidance Agreement between India and Mauritius
The Convention is amended by adding after Article 27 the following new Article:. The term ” pension ” means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.