sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 Here are other documents you need to file online ITR Got your Form-16 for FY18?
 10 must have documents to file your tax return
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16
 5 income tax returns filing mistakes you must avoid
 Your complete guide to file income tax return
 Input Tax Credit refund drive till June 14
 File Your Income Tax Return for FY 2017-18 Immediately, Know Why

India reworks tax treaty with Cyprus to check misuse
February, 23rd 2007

India is reworking its tax treaty with Cyprus to check its abuse. The tax treaty offers benefits, akin to India-Mauritius Double Taxation Avoidance Agreement, like exemption from capital gains tax.

New Delhi has already initiated negotiations with Cyprus for bringing changes in the treaty. Cyprus is also considered a tax haven similar to Mauritius. Under the India-Cyprus tax treaty, capital gains arising in India are exempt from tax and dividend income from withholding tax. Cyprus also does not levy any tax on capital gains. There is a lower 10% tax on interest, royalties and fee for technical services. Preventing misuse of tax treaties is weighing heavy on Indias agenda and it is now pushing for renegotiation of agreement with countries considered tax havens.

India may push for bringing limitation of benefit clause in the treaty with Cyprus, a source said. Under, the limitation of benefits clause, entities which are not eligible cannot get any benefit under the tax treaty. India has built in this provision in its treaty with Singapore and it is keen on bringing this provision in its treaty with Mauritius.Limitation of benefit clause, you restrict the benefits of the treaty to certain entities, BSR & Co partner Sudhir Kapadia said.

Though this clause, the governments can deny benefits of the treaty if the affairs with a view to take advantage of the treaty. Listing on the stock exchange in any of the countries, a ceiling for turnover, a certain cap on expenditure on carrying the operations in one of the contracting states are some of the restrictions which could be brought in. New Delhis concerns about the agreement with Cyprus stems from alleged misuse of the treaty by companies that route their investments into the Indian securities market to get exemption from capital gains tax. Preventing misuse of tax treaties has also been laid down in the National Common Minimum Programme of the UPA government.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions