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
From the Courts »
 M/s A Daga Royal Arts vs. ITO (ITAT Jaipur)
 Gagan Infraenergy Ltd vs. DCIT (ITAT Delhi)
 PCIT vs. Chawla Interbild Construction Co. Pvt. Ltd (Bombay High Court)
 All India Federation of Tax Practitioners vs. ITO (ITAT Mumbai)
  Suresh M. Jamkhindikar vs. ACIT (Bombay High Court)
  Suresh M. Jamkhindikar vs. ACIT (Bombay High Court)
 Mangammal @ Thulasi vs. T.B. Raju (Supreme Court)
 Mahabir Industries vs. PCIT (Supreme Court)
  Oriental Bank Of Commerce Vs. Additional Commissioner Of Income Tax
  Suresh M. Jamkhindikar vs. ACIT (Bombay High Court)
  Union of India vs. Pirthwi Singh (Supreme Court)

Rules for Mauritius investors get tougher
July, 06th 2010

Taxpayers who claim exemption from capital gains tax by furnishing a residency certificate of Mauritius had better watch out. Now, income tax (I-T) authorities can ask for evidence from the Mauritius government to examine the authenticity of a taxpayer who claims exemption on capital gains tax provided under the Indo-Mauritius Double Taxation Avoidance Agreement (DTAA).

This is a departure from the practice of furnishing a tax residency certificate from Mauritius for claiming exemption from capital gains tax.

According to an Income-Tax Appellate Tribunal (ITAT) Delhi order on March 26, more documents will be needed from the Mauritius government to support the claim of the taxpayer, as in the case of SMR Investments.

The ITAT order was released last week. If the order is not rejected by the high court, it will have bearing on similar cases. Nearly five years ago, SMR Investments, a company registered in Mauritius, had sold shares of HCL Technologies and BFL Software and generated over Rs 9 crore as capital gains.

The taxpayer claimed exemption from capital gains tax under Article 13 of India-Mauritius tax treaty. The taxpayer further claimed that it did not have a permanent establishment in India, a prerequisite for being liable to pay tax in India, and, therefore, is eligible for exemption from capital gains tax under the India-Mauritius tax treaty. But the assessing officer (AO) disagreed.

The AO claimed that it is the actual location of the effective management and not the location in which the company ought to be managed decides the residency of the company.

The company was set up in 1995-96, during which period its founder Suresh Rajpal was working in India. Mr Rajpal was a resident of India when the taxpayer purchased the shares in 1996-97. Therefore, for all practical purposes, the taxpayer is not a resident of Mauritius, the AO said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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