There are two lessons to be learnt from the 10th May amendment to the Double Tax Avoidance Agreement (DTAA) between India and Mauritius. Even if subsequent disclosure about details of the protocol showed that the...
The reworked India-Mauritius tax treaty has kept out derivatives and non-share securities like debentures from levy of capital gains tax in India as these are to be taxed only in host country, Mauritius.
They may take a close look at the special purpose vehicles that carry the investments as there are fears that all such tax treaties may be amended.
Limiting treaty abuse good, but be careful on GAAR
The new double taxation agreement with Mauritius is a welcome sign that the government is now tackling the root of the problem
Even the foreign companies earning FTS (fee on technical services) from India used to avoid paying tax in India taking benefit of the beneficial provision of the treaty.
The meeting came amid concerns about the taxation of P-Notes and the impact which the treaty revision can have over investments from other countries
Text of the agreement is silent on derivatives, which account for a large share of equity trading; analysts say debentures may be exempt as well
While investors coming in via Mauritius will need to pay capital gains tax on the sale of shares starting April 1, 2017, investments from the island country will get the best tax treatments on debt instruments anywhere in the world
#dnaEdit: What does new taxation protocol signed between India and Mauritius mean? - The change in the double taxation avoidance treaty with Mauritius could be a sign that India is confident and that it does not need to offer incentives to attract FDI