CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Working Group To Discuss India, Mauritius DTA

Working Group To Discuss India, Mauritius DTA

by Mary Swire, Tax-News.com, Hong Kong

14 January 2013


A joint working group is set to meet next month to discuss the double tax agreement (DTA) between India and Mauritius.

The existing treaty was signed in 1983, and the last round of talks towards a new agreement were held in August. The joint working group was set up back in 2006, and has held eight sessions, so far to no avail.

The Indian government has for a number of years been pushing for changes to the treaty's terms, which currently allow both resident Indian and foreign investors to route investment into India via Mauritius and take tax-free gains there.

It has in the past been alleged that the treaty allows for a high incidence of "round-tripping," whereby funds are transferred out of India and then transferred back as foreign investment into the Mumbai stock market via participatory notes.

The current treaty only provides for the taxation of capital gains tax (CGT) in an investor's country of residence. The Indian government is said to be seeking the imposition of CGT on any investments re-routed from Mauritius, in an effort to curb tax avoidance. However, Mauritius has made it clear that it is not prepared to renounce the existing exemptions.

Announcing the meeting, Shri Anand Sharma, India's Commerce, Industry and Textiles Minister said that he hopes the group "would be able to take the deliberations forward."

TAGS: capital gains tax (CGT) | tax | investment | double tax agreement (DTA) | India | Mauritius | tax avoidance | offshore | agreements | multinationals | triangulation

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »