Home > Direct Tax > Registered in other Country is enough to avail DTAA benefits

Registered in other Country is enough to avail DTAA benefits

In recent judgment of  ITAT , A company registered in Mauritius will be eligible to get the benefit of  Double Taxation Avoidance Agreement  even if its effective management in India. This ruling was in the case of Saraswati Holding Corporation, an company registered in Mauritius. ITAT agreed on argument of Saraswati Holding Corporation that “certificate of residence from the Mauritius government is sufficient proof of residency” as per CBDT Circular No – 789. Hence capital gain will be exempt.

On the basis of such we can conclude that benefit of DTAA will be availed on the basis of residency not on management basis.

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Categories: Direct Tax
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