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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However, when the activities of such an agent are devoted exclusively or almost exclusively on behalf of that enterprise, he will maurihius be considered an agent of an independent status within the meaning of this paragraph.
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; h.
Copyright Registration ph no: 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.
India-Mauritius DTAA Revised | CNK RK & Co, Chartered Accountants
Nine mzuritius the 10 largest foreign business organizations or companies investing in India from April January are based in Mauritius. File Your Copyright – Right Now! Whereas the annexed 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 has come into force on the notification by both the Contracting States to each other on completion of the mauritiuss required by their respective laws, as required by Article 28 of the said Convention.
Where by reason of the provision of paragraph 1, a person other than an individual is a resident of both the Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.
The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base.
The information presented on this blog should not be construed as legal, tax, accounting or any other professional advice or service. Sub-paragraph j inserted by Xnd No.
Double Taxation Agreements with Mauritius | Agreements | Law Library | AdvocateKhoj
The term ‘ interest ‘ as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor’s profits, and, in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures.
Toggle navigation Home About Us. The obligation contained in the preceding sentence is subject to indoa limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.
Where by reason of the provisions of paragraph 1a person other than an individual is a resident of both the Contracting Maurituus, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.
In Mauritius, in respect of income and capital gains assessable for any assessment year commentcing on or after 1st July, Paragraphs 3A and 3B inserted by Notification No. Nothing in this Convention shall affect the fiscal privileges of diplomatic or consular officials under the general rules of international law or under the provisions of special agreement. 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.
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 year 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: Further, where such resident is a company by which surtax is payable in India, the credit aforesaid shall be allowed in the first instance against income-tax payable by the company in India and as to the balance, if any, against surtax payable by it in India.
The phasing out of such tax benefits in the India Mauritius DTAA would mean that benefits in respect of capital gains from the sale of shares in an Indian company would no longer be available to Singapore residents after the new provisions come into effect on the 1 st of April 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.
In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation—.
The Double Tax Avoidance Agreement between India and Mauritius
India and Mauritius have concluded negotiations with respect to the double tax avoidance agreement India-Mauritius DTAA between the two countries. The provisions of paragraphs 1 and 2 of this article shall not apply to remuneration and pensions in respect of services rendered in connection with any business carried on by the Government of either of the Contracting States for the purpose of profit.
This article is an orphanas no other articles link to it. Why a deal can fail to create value Want to build a purposeful organisation? However for all new debts and loans created after 31 st March such incomes shall be subject to withholding tax in India at the rate of 7. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and accordingly to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed: Interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by any bank resident of the other Contracting State carrying on bona fide banking business.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 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.
In such a case, the provisions of article 7 or article 14, as the case may be, shall apply. 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.
One will need to be cautious of the impact of this development on foreign flows, at least in the near term.
Capital gains on derivatives and fixed income securities will continue to be exempt. 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.