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 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. Article 26 Exchange of Information or Document of the Convention shall be replaced by the following Article:.

While the golden tap kept flowing, apprehensions on round tripping of money by Indians via Mauritius continued even as successive Governments made efforts to renegotiate the treaty. The times when capital gains were taxed in the resident country of the investee at zero maruitius are long gone. Copyright Registration ph no: In the application of the provisions of this Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, undia the meaning which it has under the laws in force of that Contracting State relating to the areas which are the subject of this Convention.

Profits from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated. This dtwa shall not apply to income from research if the research is undertaken primarily for the private benefit of a specific person or persons. DONE on this 24th day of August, at Port Louis on two original copies each in Hindi and English languages, both the texts being equally authentic.

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

Whereas, a Protocol amending the agreement between the Government of the Republic of India and the Government of Mauritius, signed on 24 th August, 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, hereinafter referred to as the said Protocol as set out in the Annexure to this notification, was signed at Mauritius on the 10 th day of May.

Drag according to your convenience. The tax standards prescribe greater transparency in reporting of business dtas by companies and limit their ability to exploit tax arbitrage.

Paragraph 4 substituted by Notification No. Paragraph 4 deals with taxation of capital gains arising from the alienation of any property other than those mentioned in the preceding paragraphs and gives the right of taxation of capital indua only to that State of which the person deriving the capital gains is a resident.

This will alert our moderators to take action. Notwithstanding the preceding provisions of this article, the term “permanent establishment” shall be deemed not to include:. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property. 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.


The benefits are still potent enough to keep Mauritius an attractive route into India but it is shared more equitably.

Singapore, Mauritius fight for relevance after DTAA amendments in 2016

The term “revenue claim” as used mauritiys 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 authorities, insofar as the taxation thereunder is not contrary to this Convention or any other instrument to which the Contracting States are parties, indla well as interest, administrative penalties and costs of collection or conservancy related to such amount.

This 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—.

Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Protocol. However, this exemption shall apply only if such interest arises from debt- claims existing on or before 31 st March, 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 Mauritus State [other than an agent of an independent status to whom the provisions of paragraph 5 apply] shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if:.

Clarification regarding agreement for avoidance of double taxation with Mauritius 1.

Foul language Slanderous Inciting hatred against a certain community Others. 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 Azadi Bachao Andolan, cited supra, in the following passage: The provisions of paragraph 1 shall not be construed so as to impose on a Contracting State the obligation—.

The New Mauritius-India DTA – Still the Best Route to India | Vistra

Home Mauritkus India India-Mauritius tax treaty: Some may move to Singapore from Mauritius as the former is looking to introduce regulations that could help funds better structure their pooling vehicles. The Convention shall enter into force on the date of the later of these notifications and shall thereupon have effect—. The provisions of paragraphs mauritiu and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

The relevant extract of the Circular No. 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 etaa of the DTAC are concerned.

The provisions of paragraphs 123 and 4 shall not apply if the recipient of 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 26A inserted by Notification No. However, aggressive tax avoidance by multinational companies involves complex ways of artificially moving profits from countries where economic activity takes place to low or no tax countries where a group company may be incorporated. We approve of the reasoning in the decisions which we have noticed. Read next Thursday, 20 December.

Comprehensive Mahritius 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. 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 – a in the case of a request under paragraph 3, a revenue claim of the first-mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, or b in the case of a request under mautitius 4, a revenue claim of the first-mentioned State in respect of which that State may, under its laws, take measures of conservancy with indi view to ensure its collection, the competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of maurituis fact and, at the option of the other State, the first-mentioned State shall either suspend or withdraw its request.

The term “royalties” as used in this Article means payments of any mauirtius received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, and films or tapes for radio or television broadcastingany patent, jndia mark, design or model, plan, secret formula or process or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

There are also doubts on the applicability of the grandfathering clause to investments made through Singapore residents prior to 1 st April Notwithstanding the foregoing, vtaa 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 indiaa use.

In the case of divergent interpretation of the texts, the English text shall prevail. Notwithstanding the provisions of articles 14 and 15, income derived by public entertainers such as theatre, motion picture, radio maufitius television artistes and musicians, and by athletes, from their personal activities as such may be taxed in the Contracting State in which these activities are exercised.

In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:. Prior to its substitution, said paragraph read as under: