Double Taxation Avoidance Agreement Between India And Cyprus

2.) It was agreed that, like Mauritius – India`s new double taxation agreements, that it is based on the income tax of the disposal of shares. However, the investments made before April 1, 2017 will be made on the basis that the imposition of the sale of these shares will remain at a later date in the seller`s residence state. b. 15% of the gross dividend amount in all other cases. The competent authorities of the contracting states, by mutual agreement, provide for the way in which these restrictions are applied. This paragraph does not affect the corporation`s taxation on the profits on which the dividends are paid. The question is whether the sale of shares by a Cypriot company to the expert of an Indian company holding as its sole technological asset is taxable in India in the run-up to the agreement on the prevention of double taxation between India and Cyprus? 16. Cyprus Company sold the shares of an Indian company. The offending asset sold by the notator is not covered by Article 6, paragraph 2 of the double taxation agreement as “immobility”), article 14, paragraph 1, therefore does not apply to the transaction. Since the Cypriot unit does not have a stable establishment or a fixed base, the provisions of Article 14, paragraph 2, do not apply.

Moreover, it is not the disposal of ships, aircraft or related personal property, and section 14, paragraph 3, therefore does not apply. For this reason, the transaction falls under Article 14, paragraph 4 of the Double Taxation Agreement, since the contested assets that generated the capital gain are shares held by an Indian company. Therefore, any profit derived from the disposal of the property, i.e. the shares of an Indian corporation, is taxable only in the contracting state where the disposal is domiciled. Here, the alienator is a resident of Cyprus. Therefore, such a profit is taxable only in Cyprus. 3. In the case of Cyprus, double taxation is avoided, subject to the provisions of Cyprus law relating to the granting of a credit against Cyprus of taxable taxes payable in a territory outside Cyprus.