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 provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

The amount of Indian tax payable under the laws of India and inaccordance with the provisions of this Convention, whether directly or by deduction, by a resident of Mauritius, in respect of profits or income arising in India, which has been subjected to tax both in India and Mauritius shall be allowed as a credit against Mauritius tax payable in respect of such profits or income provided that such credit shall not exceed the Mauritius tax as computed before allowing any such credit is appropriate to the profits or income arising in India.

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 3.

Making women jauritius complete again.

The provisions of Article 1, 2, 3, 5 and 8 of the Protocol shall have effect:. According to the tax treaty between India and Mauritius, capital gains can only be taxed in Mauritius, the same treaty exist with 16 other countries. However, the debate is not yet settled down despite the Apex Court ruling and the tax authorities have been examining investments from Mauritius and have sought to deny the Treaty benefits under the pretext of Treaty Shopping.

Therefore, the benefits accorded under the Singapore Tax Treaty would fall away, unless amended. It is also expected to discourage speculators and non-serious investors, and thereby reduce volatility in the market. It develops leaders who team up to deliver mauritiius their promises to all its stakeholders.

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

The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. For the purposes of this Convention, unless the context otherwise requires: The second and third paragraphs deal with right of taxation of capital gains on the alienation of movable property linked with business or professional enterprises and ships and aircrafts.


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

The Government also deserves to be applauded for giving sufficient notice of close to a year before the change takes effect as well as providing protection to existing investments. A Convention for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes of income and capital gains was entered into between the Government of India and the Government of Mauritius and was notified on India’s latest ’round-trip’ destination”.

Therefore, any resident of Mauritius deriving income from alienation of shares of Indian companies will be liable to capital gains tax only in Mauritius as per Mauritius tax law and will not have any capital gains tax liability in India. Mauritius is the main provider of foreign direct investment FDI to India and also the preferred jurisdiction for Indian outward investments into Africa.

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. However, this exemption shall apply only if such interest arises from debt-claims existing on or before 31 st March, Prior to its substitution, said Article read as under:.

In case of divergence between the two texts, the English text shall be the operative one. For the purposes of the credit referred to in paragraph 4the term “Indian mauritkus payable” shall be deemed to include any amount by which tax has been reduced by the special incentive measures under—.

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

Done on this 24th day of August, at Port Louis on two original copies each in the Hindi and English Languages both the texts being equally authentic. However, the tax charged shall not exceed the rate of the Mauritius tax on profit of the company paying the dividends.

The provisions of paragraph 1 of this Article shall likewise apply in respect of remuneration paid under a development assistance programme of a Contracting State, out of funds supplied by that State to a specialist or volunteer seconded to the other Contracting State with the Consent of that other State. Subject to the provisions of Articles 16, 17, 18, 19, 20 and ondia, 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.


For the purposes of this Convention, unless the context otherwise requires:. Article 4 Article 13 Capital Gains dtaaa the Convention shall be amended with effect from 1. Prior to its omission, said maurjtius read as under: 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.

By using this site, you agree to the Terms of Use and Privacy Policy. Article 12A inserted by Notification No. The competent authority shall endeavour, if the objection appears to it 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.

Notwithstanding the provisions of paragraph 2 of this Axticle and Articles 7, 14 and 15, where income is derived from personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting State and accrues not to the entertiner or athlete himself but to another person, that income shall be taxable only in the Contracting State, if that other persons is supported wholly or substantially from the public funds of that other Contracting State, including any of its political sub-divisions or local authorities.

In this situation, the impact of the amendment in the Mauritius DTAA on the Singapore DTAA becomes critical — and it is expected that the amended tax regime for Mauritius will be applicable to capital gains for Singapore tax residents too.

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