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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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.
Home Explained What the changes in the tax treaty with Mauritius mean for India, investors. 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 or may be subjected.
For the purpose of paragraph 1, ” approved institution ” means an institution which has been approved in this regard by the competent authority of the concerned Contracting State.
In that case, the excess part of the payments shall jauritius taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. In this Article, the term ” taxation ” means taxes which are the subject of this Convention.
India-Mauritius tax treaty: An end and a new beginning
The Convention is amended by adding after Article 26 the following new Article:. 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 Convention is amended by adding after Article 12 the following new Article:.
Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt with in the foregoing Articles of this Convention, shall be taxable only in that Contracting State.
In other words, the circular shall prevail even if inconsistent with the provisions of the Income-tax Act,in so far as assessees covered by the provisions of the DTAC are concerned. This Protocol shall enter into force on the date of the later of these notifications.
A professor, teacher and research scholar who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State at the invitation of that other Contracting State or of a university, college, school or other approved institution in that other Contracting State for the purpose of teaching or engaging in research, or both, at the university, college, school or other approved institution, shall be exempt from tax in that other Contracting State on any remuneration for such teaching or research for a period not exceeding two years from the date of his arrival in that other Contracting State.
Prior to its substitution, said paragraph read as under:.
Agreement for Avoidance of Double Taxation and prevention of fiscal evasion with Armenia Whereas the annexed Convention between the Government of the Republic of India and the. For the purposes of this Convention, unless the context otherwise requires: Why managers should reveal their failures.
Where income is derived from personal activities exercised by an maurotius or an athlete in his capacity as such, and accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the State in which the activities of the entertainer or athlete are exercised.
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 on.
The Double Tax Avoidance Agreement between India and Mauritius
What the changes in the tax treaty with Mauritius mean for India, investors https: However, when the activities of such an agent are devoted exclusively or almost exclusively on behalf of mauitius enterprise, he will not be considered an agent of an independent status within the meaning of this paragraph. Subject to the provisions of paragraph 2 of this article, items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt with in the foregoing articles of this Convention, shall maurtius taxable only in that Contracting State.
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: Article 12A inserted by Notification No. Prior to its omission, said sub-paragraph read as under:.
An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent indiq any other agent of an independent status, where such persons are acting in the ordinary course of their business. Trade hopes for stocks will end tumultuous year.
Mquritius term “interest” as used iindia 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 muritius attaching to such securities, bonds or debentures.
The Double Tax Avoidance Agreement between India and Mauritius
Bilateral talks were necessitated after Mauritius in July excluded the India-Mauritius DTAA from maurltius scope of a multilateral deal brokered by the Organisation for Economic Cooperation and Development OECD aimed at upgrading all existing bilateral tax treaties of participating nations to the latest anti-tax avoidance norms.
Subject to the provisions of articles 16, 17, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. Tax avoidance India—Mauritius relations Taxation in India.
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Mauritius route – Wikipedia
Section 90 is for taxpayers who have paid the tax to a country with which India has signed DTAA, while Section 91 provides relief to tax payers who have paid tax to a country with which India has not signed a DTAA. The provisions of paragraph 1 of this Article shall also apply to profits from the participation in a pool, a joint business or an indis operating agency. The maurutius gives India the right to tax capital gains on transfer of Indian shares acquired on or after 1 April