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May 14, 2016

Amendment to India-Mauritius Double Taxation Avoidance Agreement: Questions, Questions

The Government of India has on May 10, 2016 issued a press release announcing the Protocol for amendment of the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains between India and Mauritius (Tax Treaty).

Key Features of the Protocol on Capital Gains

1. India now has the taxation rights on capital gains arising from the alienation of shares acquired on or after April 1, 2017 in a company resident in India with effect from financial year 2017-18.

2. Protection to investment has been granted in relation to the shares acquired before April 1, 2017.

3. The rate of taxation on the capital gains arising between the transition period of April 1, 2017 to March 31, 2019 shall be 50% of the domestic tax rate. (More Details here)


1. Are convertible instruments taxable on conversion after Apr 1, 2017?

2. The amendment appears to leave untouched the taxation of indirect transfers. (e.g. Vodafone Hutch).

3. More Details available here

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