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TMI BlogTerminationX X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of income and capital gains assessable for the assessment year commencing on 1st day of July in the second calendar year next following the calendar year in which the notice is given, and subsequent years. In WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed the present Convention. Done on this 24th day of August, 1982 at Port Louis on two original copies each in Hindi and English languages, both the texts being equally authentic. In case of divergence between the two texts, the English text shall be the operative one. ******* Taxation of income from dividend and capital gains under the Indo-Mauritius Double Tax Avoidance Convention 1. The Ministry of Finance today 13-4-2000 issued a clarification regardi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Authorities, such certificate will constitute sufficient evidence for accepting the status of residence as well as beneficial ownership for applying the DTAC accordingly. 3. It further said, the test of residence mentioned above would also apply in respect of income from capital gains on sale of shares. Accordingly, FIIs, etc., which are resident in Mauritius would not be taxable in India on income from capital gains arising in India on sale of shares as per paragraph 4 of article 13. The aforesaid clarification shall apply to all proceedings which are pending at various levels. PIB Press Release : Dated 13-4-2000 . Clarification regarding agreement for avoidance of double taxation with Mauritius 1. A Convention for the avoidance of dou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ansfer or relinquishment of the property or the extinguishment of any rights in it or its compulsory acquisition under any law in force in India or in Mauritius. Circular : No. 682, dated 30-3-1994 . Clarification regarding taxation of income from dividends and capital gains under the Indo-Mauritius Double Tax Avoidance Convention (DTAC) 1. The provisions of the Indo-Mauritius DTAC of 1983 apply to residents of both India and Mauritius. Article 4 of the DTAC defines a resident of one State to mean any person who, under the laws of that State is liable to taxation therein by reason of his domicile, residence, place of management or any other criterion of a similar nature. Foreign Institutional Investors and other investment funds, etc., whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clarified that wherever the certificate of residence is issued by the Mauritian authorities, such certificate will constitute sufficient evidence for accepting the status of residence, as well as beneficial ownership for applying DTAC accordingly. The said circular specified the mode of proof of residence of an entity in Mauritius. Certain doubts have been raised regarding the effect of the aforesaid circular, particularly whether the said circular would also apply to entities which are resident of both India and Mauritius. In order to remove all doubts on the subject, it is hereby clarified that where an assessee is a resident of both the Contracting States, in accordance with para 1 of article 4 of Indo-Mauritius DTAC, then, his residence ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g company has no permanent establishment in India, it cannot be treated as laying down the correct position in lawTVM Ltd. v. CIT [1999] 102 Taxman 578/237 ITR 230 (AAR - N. Delhi). n Applicant which is a collective investment vehicle like a mutual fund and has set up its business in Mauritius and made investments in Indian companies and will have income in form of dividends, interest and capital gains from its investments, it will be entitled to benefit of DTAA between Mauritius and India XYZ/ABC Equity Fund v. CIT [2001] 116 Taxman 719/250 ITR 194 (AAR - N. Delhi). n Even a non-independent agent can be deemed to be a P.E. only if he can act independently in the matter of concluding contracts on behalf of the principal on his own, freely a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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