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?. Recent news of India and Mauritius signing a Protocol to amend their 33 year old tax treaty caused seismic changes in the tax world. Though not completely. India and Mauritius have concluded negotiations with respect to the double tax avoidance agreement (India-Mauritius DTAA) between the two countries.

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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. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities, as well as the maurifius activities of physicians, lawyers, engineers, architects, dentists and accountants.

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 to 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.

However, this exemption shall apply only if such interest arises from debt- claims existing on or before 31 st March, 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. 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.

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.

India-Mauritius DTAA Revised

During a visit to Mauritius, Prime Minister Modi raised the question of treaty re-negotiation. Foul language Slanderous Inciting hatred against a certain community Others.

Where, at any time after a request has been indoa 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. KKR, Blackstone, Brookfield, Multiples, Bain and Apollo have evaluated their tax structures, according to people with knowledge of the matter.


India, Mauritius set to hold fresh talks on DTAA amendments – Livemint

File Divorce in Delhi – Msuritius Now! Australia Sydney New Zealand. Where by reason of the provisions of paragraph 1a 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.

Clarification regarding agreement for avoidance of double taxation with Mauritius. The relevant extract of the Circular No. DTAAs are termed in such a way that the entity is only taxable in its country of residence. Where the correct amount of profits attributable to a permanent establishment cannot be readily determined or the determination thereof presents exceptional difficulties, the profits attributable to the permanent establishment may be maugitius on a reasonable basis.

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.

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 —.

It develops leaders who team up to deliver on their promises to all its stakeholders. The exchange of information or documents shall be either on a routine basis or on request with reference to particular cases or both.

Paragraph 3A inserted by Notification No. My Saved Articles Maurihius in Sign up. Such persons or authorities shall use the information only for such purposes. However India has been keen to show its preference by lowering Indian withholding tax on interest to just 7. To see your saved stories, click on link hightlighted in bold. In no case shall the provisions of this Article be construed so as to impose on a Indiz State the obligation: Drag according to your convenience.

India Tax and advisory, business entry and consulting services. Article 13 4 of the DTAA provides that the profits made by a resident of maurltius contracting state from the alienation of shares shall be taxable only in that state.

India-Mauritius DTAA Revised | CNK RK & Co, Chartered Accountants

This Convention shall apply dtxa persons who are residents of one or both of the Contracting States. Mauritius has a historical association with India which forms the basis of an exceptionally good relationship between the countries and investors will continue inria benefit from that Mauritius has over 25 years of working experience in the Indian market Mauritius is ideally positioned midway between Europe and India, enabling good communication among the parties within any business day Mauritius remains a very cost effective jurisdiction mauirtius a highly qualified workforce now trained to deal with quite a foreign Indian market.


In what could be a reaction to the tax treaty amendment and a changing tax environment due to regulations such as Base Erosion and Profit Shifting BEPSSingapore is looking to introduce a framework to make setting up pooling vehicles simpler. When that happens, the provisions of such an agreement, with respect of cases to which where they apply, would operate even if inconsistent with the provisions of the Income-tax Act.

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.

Paragraph 2 substituted by Notification No. In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:. This article shall not apply to income from research if the research is undertaken primarily for the private benefit of a specific person or persons. International Business World News.

Timing of the change – Why now?

Bringing the bazaars home. GAAR seeks to give the Indian authorities powers to scrutinise transactions structured in such a way as to deliberately avoid paying tax in India.

Get instant notifications from Economic Times Allow Not now. Where under this Convention a resident of a Contracting State is exempt from tax in that Contracting State in respect of income derived from the other Contracting State, maurtiius 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.

The Convention is amended by adding after Article 26 the following new Article:. Though not completely unanticipated, the change is significant for foreign investors to go back to the drawing board indiq reassess their structures. For mairitius 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 Etaa and the Bank of Mauritius.