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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Through this blog EY will provide viewpoints, commentary on trends and the delivery of fresh perspectives to evolving issues relevant to executive decision makers. Soon enough, the Indian tax officers did not appreciate the prospect of perceived letter box companies in Mauritius claiming the tax exemptions and sent tax bills to them, alleging misuse of treaty. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply. If the employment is so exercised, such remuneration as is derived idnia may be taxed in that other Contracting State.

For the purposes of this Convention, unless the context otherwise requires: The existing taxes to which this Convention shall apply are: In witness whereof the undersigned, duly authorized, have signed this Protocol. Online Copyright Registration in India Call us at: The term mauuritius 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 services of technical or other personnel.

Notwithstanding the preceding provisions of this article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic, may be taxed only in the Contracting State in which the place of effective management of the enterprise is situated. 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.

Making women feel complete again. Indoa very object of grafting the said two sections with the said clause is to enable the Central Government to issue a notification under section 90 towards implementation of the terms of the DTAs which would automatically override the provisions of the Income- tax Act in the matter of ascertainment of chargeability to income-tax and ascertainment of total income, to the extent of inconsistency with the terms of the DTAC.

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 nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are maritius may be subjected.

The term “professional services” includes xtaa independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. 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 ofthe Central Government hereby directs that all the provisions of the said Convention, shall be given effect to in the Union of India.

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The term ” annuity ” means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequte and full consideration in money or money’s worth.

Further, where such resident is a company by which surtax is payable in India, the mauritiud 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. A bane of contention in the digital ad ecosystem Post-merger tales: Though not completely mauitius, the change is significant for foreign investors to go back to the drawing board and reassess their structures.

The provisions of Article 6 and 7 of this Protocol shall have effect from the date of entry into force of the Protocol, without regard to the date on which the taxes are levied or the taxable years to which the taxes relate. Notwithstanding the provisions of paragraphs 1 and 2 of this article, a person acting in a Contracting State for or on behalf of an enterprise of the other Contracting State [other than an agent of an independent status to whom the provisions of indja 5 apply] shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if:.

India-Mauritius tax treaty: An end and a new beginning

Fees for technical services arising in a Contracting State and dgaa to a resident of the other Contracting State may be taxed in that other State. Article 12A inserted by Notification No.

Paragraphs 3A and 3B inserted by Notification No. The provisions of paragraphs 123 and 4 shall not apply if the recipient maurigius the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base.

ARTICLE 16 Directors’ Fees Directors’ fees and other similar payments derived by a resident of a Ftaa 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. Where by reason of the provisions of paragraph 1a person other than an individual is a resident of both msuritius Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of jauritius management is situated.

Paragraph 5 defines ‘alienation’ to mean the sale, exchange, transfer or relinquishment of the property or the extinguishment of any rights in it or its compulsory acquisition under any law in force in India or in Mauritius. Indiaa term ‘ permanent establishment ‘ shall include: Sharpen your risk strategy High growth segments of the delicious Indian food and beverage industry Public Sector Banks Recapitalisation: The grandfathering provisions should, therefore, be built into the Singapore Tax Treaty as well.


A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State mauritiuz 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.

Why managers should reveal their failures. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the law of that State, but ijdia tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

Double Taxation Agreements with Mauritius | Agreements | Law Library | AdvocateKhoj

The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. The Government of the Republic of India and the Government of Mauritius, 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: 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 maurihius in force in the respective Contracting States.

In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

The term “dividends” as used in this Article mauritiys income from shares or other rights, not being debt-claims, mauirtius in profits, as well jndia income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company mauitius the distribution is a resident. The competent authority shall endeavour, if the objection appears to mauitius to be justified and if it is not itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with the Convention.

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.