Mauritius treaty:

The Changes
All investments made before April 1, 2017 will not be liable to be taxed in India. For
investments made after 1 April 2017, the new version of the treaty provides for a
tax concession for two years in the transition phase. Investors will have to pay only
50% of the applicable capital gains tax till 2018-19. To avail the benefit of the tax
treaty companies based in Mauritius to spend at least Rs.27 lakhs in the preceding
one year. No such clause was available earlier
Application of the treaty to Singapore treaty:
The amendment to the India Mauritius tax treaty also automatically applies to the
India-Singapore tax agreement.
This is because article 6 of the treaty with Singapore states that articles 1, 2, 3 and
5 of this Protocol shall remain in force so long as any Convention or Agreement for
the Avoidance of Double Taxation between the Government of the Republic of India
and the Government of Mauritius provides that any gains from the alienation of
shares in any company which is a resident of a Contracting State shall be taxable
only in the Contracting State in which the alienator is a resident.
Simply put, once India gets the right to tax capital gains in its treaty with Mauritius,
it will also get a similar right under the India-Singapore treaty.
The finance ministry is expected to come out with a clarification on the impact on
the India-Singapore treaty.
Tax implications:
Listed companies:
short term capital gain: 7.5% till FY 19 and 15% after that (less than 12
months)
Long term capital gain: Nil (more than 12 months)
Unlisted companies:
Short Term Capital Gains: (less than 24 months) 7.5% till FY 19 and 15% after
that
Long Term Capital Gains: (more than 24 months) 10% till FY 19 and 20% with
indexation after FY19.