NEW DELHI: The revenue tax division on Friday mentioned amendments to the India-Mauritius double tax avoidance treaty (DTAA) haven’t been ratified and notified below the Indian legislation.
“As and when the protocol comes into pressure, queries, if any, will likely be addressed, wherever mandatory,” CBDT mentioned in a social media publish. Earlier this month, India and Mauritius had signed a protocol to amend the treaty elevating issues over how it will have an effect on new and previous investments routed to the nation.The amendments have included a principal goal take a look at (PPT) to assert treaty advantages.
“This might imply that taxpayer’s resident in Mauritius can now not merely depend on a Tax Residency Certificates issued by Mauritius Income authority to assert treaty advantages. CBDT Round 789 had clarified that TRC by Mauritian authorities will represent ample proof of residence to assert advantages of tax treaty… With PPT take a look at now launched within the India-Mauritius tax treaty, tax authorities in India are prone to look past TRC and may have the flexibility to disclaim the good thing about India-Mauritius tax treaty whether it is affordable to conclude, that getting the treaty advantages was one of many principal functions of any association or transaction that resulted straight or not directly such tax profit,” mentioned Lokesh Shah, Companion, IndusLaw.
“As and when the protocol comes into pressure, queries, if any, will likely be addressed, wherever mandatory,” CBDT mentioned in a social media publish. Earlier this month, India and Mauritius had signed a protocol to amend the treaty elevating issues over how it will have an effect on new and previous investments routed to the nation.The amendments have included a principal goal take a look at (PPT) to assert treaty advantages.
“This might imply that taxpayer’s resident in Mauritius can now not merely depend on a Tax Residency Certificates issued by Mauritius Income authority to assert treaty advantages. CBDT Round 789 had clarified that TRC by Mauritian authorities will represent ample proof of residence to assert advantages of tax treaty… With PPT take a look at now launched within the India-Mauritius tax treaty, tax authorities in India are prone to look past TRC and may have the flexibility to disclaim the good thing about India-Mauritius tax treaty whether it is affordable to conclude, that getting the treaty advantages was one of many principal functions of any association or transaction that resulted straight or not directly such tax profit,” mentioned Lokesh Shah, Companion, IndusLaw.
&w=1200&resize=1200,0&ssl=1 "AMCs, broking shares rally as much as 15%; Aditya Birla, UTI, CAMS at new peak | Information on Markets")