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.
|Published (Last):||26 October 2005|
|PDF File Size:||7.6 Mb|
|ePub File Size:||14.3 Mb|
|Price:||Free* [*Free Regsitration Required]|
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.
India-Mauritius DTAA amendments – a Bird’s eye view | Taxsutra
For the ans 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.
Income derived by a resident of a Contracting State in respect of indiw services or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation: Making women feel complete again. Interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by: 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 dtas the enterprise is mauirtius.
Done on this 24th day of August, at Betweenn Louis on two original copies each in the Hindi and English Languages both the texts being equally authentic.
In case of divergence between the two texts, the English text shall be the operative one. For the purposes of this Convention, the term ‘ permanent establishment ‘ means a fixed place of business through which the business of the enterprise is wholly or partly carried jauritius. Online Copyright Registration in India Call us at: The competent authorities of the Contracting States shall agree from time to time on the list of the information or documents which shall be furnished on a routine basis.
The Double Tax Avoidance Agreement between India and Mauritius
Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Bewteen State not dealt with in the foregoing Articles of this Convention and arising in the other Contracting State may also be taxed in znd other State. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed—.
The fact that the capital asset is located in India is immaterial. If the place of effective management of a shipping enterprise is abroad a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is resident.
Article 5 Permanent Establishment of the Convention shall be amended by inserting in paragraph 2 the following new sub-paragraph:. Where, by reason ctaa a special relationship between the payer and the beneficial owner anx 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.
The Double Tax Avoidance Agreement between India and Mauritius
This well settled betweeb has been re-stated by the Supreme Court in the case of Union of India vs. Where, by reason of a special relationship between the payer and the recipient or between both of them and some other person the amount of royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount.
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 of the Central Government hereby, directs that all the provisions of the said Convention, shall be given effect to in the Union of India. DESIRING to conclude a Convention 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.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 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. Prior to its substitution, said paragraph read as under: 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 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.
In witness whereof the undersigned, being duly authorised thereto, have signed the present convention. However, the tax charged shall not exceed the rate of the Mauritius tax on profit of the company paying the dividends. Done in duplicate at Mauritius this 10th day of Mayin the English and Hindi languages, both texts equally authentic.
Under the Income Tax Act of India, there are two provisions, Section 90 and Section 91, which provide specific relief to taxpayers to save them from double taxation. 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 of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency. Article 22 Other Income of the Convention shall be amended by inserting after paragraph 2 the following new paragraph:.
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 1, 2 and 3 of this Article shall be taxable only in that State. Betwee the provisions of articles 14 and 15, income derived by public entertainers such as theatre, motion picture, radio or television artistes and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities daa exercised.
The term “royalties” as used in this Article means payments betwefn any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or tapes for radio or television broadcastingany patent, trade mark, design or model, plan, secret formula or process or for the use of, or the right to idnia, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
For this purpose a company shall be deemed to be shell or a conduit company if its total expenditure in Mauritius is less than Rs 27,00, in the 12 months prior to the sale of shares.
Thank you for your comment, we value your opinion and the time you took to write to us! A Convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes of income and capital gains was entered into between the Government betwewn India and the Government of Mauritius and was notified on Investors looking to take benefit must also keep provisions betwedn GAARwhich come into effect also from 1st of Aprilin mind.
The Income Tax Department appeals to taxpayers NOT to respond to such e-mails and NOT to share information relating to their credit card, bank and other financial accounts. This Protocol shall enter into force on the date of the later of these notifications.
The present Government came to power promising action on black money stashed abroad. 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.
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, and the provisions of Article 11 shall not apply in relation to such interest.
Azadi Bachao Andolan, cited supra, in the following passage: Toggle navigation Home About Us. Article 4 Article 13 Capital Gains of the Convention shall be amended with effect from 1. As of date such incomes are exempt from Interest in India. Notwithstanding the provisions of paragraph xnddividends 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.