DTAA INDIA MAURITIUS PDF

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.

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The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article. Prev Far-reaching implications of the Mauritius protocol.

However, subject to the provisions of paragraphs 3 and 4 of this article, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State.

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 taxes which are the subject of this 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, but 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 10 per cent of the gross amount of the fees for technical services.

Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both States and the competent authority of the supplying State authorizes such use. 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.

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 the interest paid, having regard to the debt-claim for which it is 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. 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.

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This Convention shall apply to persons who are residents of one or both of the Contracting States. Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with this Convention, he may, notwithstanding the remedies provided by the national laws of those States, present his case to the competent authority of the Contracting State of which he is a resident.

What the changes in the tax treaty with Mauritius mean for India, investors

Interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by: The term ” royalties ” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright mauritiux 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 use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

That revenue claim shall be collected by that other Dta in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State. 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 dtas the other.

Article 13 Capital Gains of the Convention shall be amended with effect from 1. 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.

However, this exemption shall apply only if such interest arises from debt-claims existing on indka before 31 st Maritius, Each of the Contracting Indka shall notify to the other completion of mauritjus procedures required by its law for the bringing into force of this Convention. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

The Double Tax Avoidance Agreement between India and Mauritius

The taxation on a permanent establishment mautitius an enterprise of a Contracting Dta 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 inia in the same circumstances. Have agreed as follows:. Income derived by a resident of a Contracting State in respect of professional 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.

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.

International Taxation >Double Taxation Avoidance Agreements

Gains from the alienation of any property other than that referred indiq in paragraphs 1, 2, 3 and 3A shall be taxable only in the Contracting State of which the alienator is a resident.

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In no case shall the provisions of this Article be construed so as to impose on a Contracting Mwuritius the obligation: 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. However, subject to provisions of paragraphs 3, 3A and 4 of this Article, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is inxia resident of the other Ineia State, the tax so charged shall not exceed 7.

Where under this Convention a resident of Contracting State is exempt from tax in that Contracting State dtas respect of income derived from the other Contracting State, then the first mentioned Contracting State may, in calculating tax on the remaining income of that person, apply the rate of tax which would have been applicable if the income exempted from tax in accordance with this Convention had not been so exempted.

Since the inception of its Financial Services sector, Mauritius has taken all appropriate steps to safeguard the credibility of its jurisdiction.

In the case of a dividend paid by a company which is a resident of Mauritius maurltius 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 ineia the company in respect of the profits out of which such dividend is paid.

In terms of paragraph 4, capital gains derived by a resident of Mauritius by alienation inddia shares of companies shall be taxable only in Mauritius according to Mauritius tax law. The competent authorities of the Contracting States may communicate indai each other directly for the purpose of reaching an 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.

This Circular was a clear enunciation of the provisions contained in the DTAC, which would have overriding effect over the provisions of sections 4 and 5 of the Income-tax Act, by virtue of section 90 1 of the Act 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 dtax to Mauritius tax law.

The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation—. Clarification regarding agreement for avoidance of double taxation with Mauritius.

Therefore, the benefits accorded under the Singapore Tax Treaty would fall away, unless amended. The existing taxes to which this Convention shall apply are: