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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They may also consult together for in the elimination of double taxation in cases not provided for the Convention. The treaty provides for a capital gains tax exemption to a Mauritius resident on transfer of Indian securities. 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.
Why managers should reveal their failures. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
The competent authorities of the Contracting States shall notify to each btween any significant changes which are made in their respective taxation laws. Each of the Contracting State shall notify to the other completion of the procedures required by its law for the bringing into force of this Convention.
The provisions of paragraph 1 of this Article shall likewise apply in respect of remuneration paid under a development assistance programme of a Contracting State, out of funds supplied by that State to a specialist or volunteer seconded to the other Contracting State with the Consent of that other 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 dtaz permanent establishment.
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 dtxa of taxes which are the subject of this Convention.
Anr 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.
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 mauritlus by the special incentive measures under—. July updates 11 August, It develops leaders who team up to deliver on their promises to all its stakeholders. In this Article, the term ” taxation ” means taxes which are the subject of this Convention. The laws in force in either of the Contracting States shall continue indla govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Convention.
In the case of a dividend paid by a company which is a resident of Mauritius to a company which is a resident of India and which owns at least 10 per cent of the shares of the company paying the dividend the credit shall take into account in addition to any Mauritius Tax for which credit may be allowed under the provisions of sub-paragraph a of this paragraph the Mauritius tax payable by the company in respect of the profits out of which such dividend is paid.
However, when the activities of such an agent are devoted exclusively or almost mahritius on behalf of that enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. Income Tax department, Government of India. Prior to its substitution, said Article read as under: However, the debate is not yet settled down despite the Apex Court ruling and the tax authorities have been examining investments from Mauritius and have sought to deny the Treaty benefits under the pretext of Treaty Shopping.
In terms of paragraph 4, capital gains derived by a resident of Mauritius by alienation of shares of companies shall be taxable only in Mauritius according to Mauritius tax law. 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. For the purposes 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.
For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of the bstween is wholly or partly carried mauritlus.
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This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the fees for technical services being a betewen 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 Rtaa independent personal services from a fixed base situated therein, and the right or mauritiux in respect of which the fees for technical services are paid is effectively connected with such permanent establishment or fixed base.
Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be. Sharpen your risk strategy High mauriyius segments of the jndia Indian food and beverage industry Public Sector Banks Recapitalisation: For Further Details Contact: 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 Betweej to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of that first-mentioned State are or may be subjected in the same circumstances.
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 provisions of paragraph 1 shall apply to income derived from msuritius direct use, letting, or use in any other form of immovable property. This Article shall not apply to income from research if the research is undertaken primarily for the private benefit of a specific person or persons. 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 the immediately preceding ” previous year ” on the ” year of income “.
For the purposes of this Convention, unless the context otherwise requires: The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual begween with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention.
However, such fees for technical services may also be taxed in the Contracting State in which they arise, and according to the laws of that State, ctaa 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 betweej per cent of the gross amount of the ddtaa for technical services.
The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. A side effect of this change might be a surge in investments from Mauritius based entities to take benefit of the grandfathering clause.
In such imdia, the provisions of article 7 or article 14, as the case may be, shall apply.
India-Mauritius DTAA Revised | CNK RK & Co, Chartered Accountants
In the application of the provisions of 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.
They may disclose mauritiuw information in public court proceedings or in judicial decisions. How to proceed with filing DIR-3? As per the information available, the benefit of the reduced tax rates will be available to those Mauritius entities who:. Notwithstanding the preceding provisions of this Article, the term permanent establishment shall be deemed not to include: Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
Notwithstanding the preceding provisions of this article, the term “permanent establishment” shall be deemed not to include: In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the mahritius provisions of this Convention.
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Any agreement reached shall be implemented notwithstanding any time limits in the laws of the Contracting States. Have agreed as follows:. Now, therefore, in exercise of the powers conferred by section 90 of the Income-tax Act, 43 of and section 24A of the Companies Profits Surtax Act, 7 vtaathe Central Government hereby directs that all the provisions of the said Convention, shall be given effect to in the Union of India.
However, this exemption shall apply only if such interest arises from debt-claims existing on or before 31 st March, 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 transportation.
Gains from the alienation of shares acquired on or after 1st April in a company which mxuritius resident of a Contracting State may be taxed in that State.