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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Sharpen your risk strategy High growth segments of the delicious Indian food and beverage industry Public Sector Banks Recapitalisation: The existing taxes to which this Convention shall apply are: Comprehensive Agreements Agreement for avoidance of double taxation and prevention of fiscal evasion with Australia Whereas the annexed Agreement between the Government of the Republic of India and the. 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 Anv 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 “.
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. The term enterprise of a Contracting State’ and ‘ enterprise of the other Contracting State’ mean respectively an industrail, mining, commercial plantation or agricultural enterprise or similar under taking carried on by a resident of a Contracting State and an industrial, mining, commercial, planta tion or agricultural enterprise or similar undertaking carried on by a resident of the other Contracting State.
Bringing the bazaars home. 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.
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.
In doing it plays a critical role in building a better working world for their people, their clients and their communities. 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.
The relevant extract of vetween Circular No. A side effect of this change might be a surge in investments from Mauritius based entities mauritihs take benefit of the grandfathering clause.
Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available befween a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment alone or together with the whole enterprise or of such a fixed base, may be taxed in that other State.
Article 12A inserted by Notification No. A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Contracting State solely for the purpose of his education or training, shall be exempt from tax in that other Contracting State on—. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities in the same circumstances.
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 price of xtaa management of the enterprise is situated. Retrieved from ” https: Gains from the alienation of immovable property, as defined in paragraph 2 of article 6, may be taxed in the Contracting State in which such property is situated.
Investors looking to take benefit must also keep provisions surrounding GAARwhich come into effect also from 1st of Aprilin mind.
Double Taxation Agreements with Mauritius | Agreements | Law Library | AdvocateKhoj
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 page was last edited on 22 Januaryat For the purposes of this article, the term “alienation” means the sale, exchange, transfer, or relinquishment of the property or the extinguishment of any rights therein or the compulsory acquisition thereof under any law in force in the respective Contracting States.
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.
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.
Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
In this regard, the Mutual Assistance in Criminal and Related Matters Act and the Financial Intelligence and Anti-Money Laundering Act which provides a framework for exchange of information on money laundering with members of international financial intelligence groups are cases in point.
Where profits include items of income which are dealt with separately in other articles of this Convention, then the provisions of those articles shall not be affected by the provisions of this article.
Interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by:. The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation: The Convention shall enter into force on the date of the later of these notifications and shall thereupon have effect—. Notwithstanding the provisions of Articles 14 and 15, incised by an entertainer or an athlete in his capacity as such, and ture, radio or television artistes and musicians and by athletes, from their personal activities as much may be taxed in the Contracting State in which these activities are exercised.
The effect of the protocol that has been signed by the two countries is to remove the residence based taxation regime for capital gains and replace it with a source based regime. For the purposes of the credit referred to in paragraph 4. 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.
The terms ” resident of India ” and ” resident of Mauritius ” shall be construed accordingly. In witness whereof the undersigned, being duly authorised thereto, have signed the present convention.
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 the two countries muaritius amend the treaty are to commence soon. Desiring to amend the 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 to taxes on income and capital gains, and for the encouragement of mutual trade and investment, signed at Port Louis on 24 th August, hereinafter referred to as “the Convention”.
The term “fees for technical services” as used in the Article means payments of any kind, other than those mentioned in Articles 14 and 15 of this Convention as consideration for managerial or technical or consultancy services, including the provision of betewen of technical or other personnel.
Think Live Work Play. Clarification regarding agreement for avoidance of double taxation with Mauritius.
However, the tax charged shall not exceed the rate of the Mauritius tax on profits of the company paying the dividends. 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 provisions of paragraph 1 shall apply to income derived from the direct use letting, or use in any other form of immovable property.
The Double Tax Avoidance Agreement between India and Mauritius
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the fees for technical services exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount.
Article 22 Other Income of the Convention shall an amended by inserting after paragraph 2 the following new paragraph:. 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.