August 29, 2016
Revised tax treaty with Mauritius, which allows India to tax capital gains on investments routed through the island nation, will tackle round tripping of funds and curb tax evasion, the Finance Ministry said on Monday.
Following the decade-long negotiations, India and Mauritius signed the amendment to the 1983 Double Taxation Avoidance Convention (DTAC) on May 10, and was notified by the Indian government on August 11.
“The Protocol will tackle treaty abuse and round tripping of funds attributed to the India-Mauritius treaty, curb revenue loss, prevent double non-taxation, streamline the flow of investment and stimulate the flow of exchange of information between the two contracting parties.”