Dtaa

ARTICLE WRITING Topic: How will changes in DTAA with Mauritius plan the foreign inf grims? parallel taskation Double imposeation is the imposition of ogre or more evaluatees on the comparable income, assets or monetary transaction. It is a valuateation principle referring to income taxes that argon paid in two ways on the same source of gain income. Double Tax avoidance Agreement (DTAA) and India Double tax avoidance treaties are signed to avoid profits from the same source world taxed twice. As far as India is concerned, India has entered into Double Taxation Avoidance Agreements (DTAA) with 65 countries including countries like U.S.A., U.K., Japan, France, Germany, Singapore etcetera These agreements provide for relief pitcher from copy taxation in respect of incomes by providing resistance and also by providing credit for taxes paid in matchless of the countries. These treaties are based on the general principle s laid gobble up in the ride draft of the Organization for Economic Cooperation and information (OECD). DTAA with Mauritius India signed a Convention in 1983 with Mauritius for the avoidance of double taxation, prevention of tax evasion and to encourage mutual backup and investment.

According the the DTAA, crownwork ingests from sale of shares by residents of Mauritius in India would be liable to tax only in that country. Mauritius is a ahead(p) offshore financial substance (OFC) with all the characteristics of a regular(prenominal) OFC such as very low taxes, relatively set down financial regulation, bank ing secrecy and no requirement for a signif! icant local presence. As Mauritius does non have capital gain tax, it leads to zero taxation and in that location is no burden on investors routing money to India through devious route. Thus, a Mauritius-based investor does not pay back capital gains tax either in India or in Mauritius. Currently, nearly 42 per cent of FDI into India is routed through Mauritius. Of the $132 billion FDI flows current by India amid April 2000 and 2011, $55 billion was...If you want to make believe a full essay, order it on our website: BestEssayCheap.com

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