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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International Taxation >Double Taxation Avoidance Agreements

Capital gains on derivatives and fixed income securities will continue to be exempt. SO E [NO.

ANNEXURE 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: The term ” pension ” means a periodic payment made in consideration of past services or by way of compensation for injuries received in the course of performance of services.

It looks like your browser does not have JavaScript enabled. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

Interest arising in a Contracting State shall be exempt from tax in that State provided it is derived and beneficially owned by any bank resident of the other Contracting State carrying on bona fide banking business. Sub-paragraph j inserted by Notification No. Article 13 4 of the DTAA confers the power of taxation of the gains derived by a resident of a contracting state from the alienation of specified property only in the state of residence i.

If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State. Article 26 substituted by Notification No.

India-Mauritius DTAA amendments – a Bird’s eye view | Taxsutra

However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed—. Where under this Convention a resident of a Contracting State is exempt from tax in that Contracting State in mauriius of income derived from the other Contracting State, then 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 term “permanent establishment” shall include—.

The Convention shall enter into force on the date dtaaa the later of these notifications and shall thereupon have effect—. Now, therefore, in exercise of the powers conferred by sub-section 1 of section 90 of the Income-tax Act, 43 ofthe Central Government hereby notifies that all the provisions of said Protocol, as annexed hereto as Annexure, shall be given effect to in the Union of India, in accordance with Article 9 of the said Protocol.

The makritius authorities of the Contracting States shall notify to each other any significant changes which are dtqa in their respective taxation laws. They may also consult together for in the elimination of double taxation in cases not provided for the Convention. File Divorce in Delhi – Right Now! For the msuritius of the credit referred to in paragraph 2 the term “Mauritius tax payable” shall be deemed to include any amount which would have been payable as Mauritius tax for any year but for an exemption or reduction of tax granted for that year or any part thereof under:.

Article 4 Article 13 Capital Gains of the Convention shall be amended with effect from 1.

India, Mauritius set to hold fresh talks on DTAA amendments

The term “immovable property” shall be defined in accordance with the law and usage of the Contracting State in which the property is situated. 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.


This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid. 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.

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


Article 26A inserted by Notification No.

They may also consult together for the elimination of double taxation in cases not provided for in the Convention. The existing taxes to which this Convention shall apply are: 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 indiw 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 kndia arising in India.

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

A resident of a Contracting State shall not be entitled to the benefits of Article 13 3B of this Convention if its affairs were arranged with the primary purpose to take advantage of the benefits in Article 13 3B of this Convention. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 indoa 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.

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. Under dgaa Income Tax Act of India, there are two provisions, Section 90 and Section 91, which provide specific relief to taxpayers to save them from mairitius taxation. The competent authorities of the Contracting States shall agree from time to time on maurutius list of the information or documents which shall be furnished on a routine basis.

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.

Mauritiuus the purposes of this Convention, unless the context otherwise requires:

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