Mauritius in talks with India on revised DTAA

NEW DELHI: Mauritius today said it is in talks with India on the revised Double Taxation Avoidance Agreement (DTAA), and refused to commit a timeline to the completion of the discussion between the two nations.

"It is premature for me to pronounce on that because it is not over yet," Prime Minister Anerood Jugnauth said.

Asked whether the talks on the DTAA were on, Jugnauth replied, "Yes. They are not over yet."

"I can't commit a precise time limit," the Mauritius Prime Minister said.

India has concerns that Mauritius, which is one of the top sources of foreign direct investments into the country, is being misused for round-tripping of funds.

Round-tripping is usually referred to routing of domestic investments through Mauritius to take advantage of the Double Taxation Avoidance Agreement (DTAA) between the two countries.

The negotiations are part of India's efforts to sharpen its focus to locate and bring back illegal funds parked by its citizens in global tax havens.

Jugnauth, who was here for the IndiaAfrica Summit, said he had a very "fruitful and crucial" meeting with Prime Minister Narendra Modi where the two leaders discussed matters of mutual collaboration.

Pointing out that Mauritius is re-inventing itself by exploring new vistas of economic cooperation, Jugnauth said, "My government is taking bold steps to increase air connectivity to the Eastern Southern African nation.

"Mauritius will soon be transformed into an important regional aviation hub with establishment of an important air corridor between Africa and Asia. Mauritius will thus play a major role in being the bridge to Africa and Asia," he added.

Opening of Board of Investment Office (BoI) in India, Mauritius government's investment promotion agency, will be the focal point for trade and investment between the two countries, Jugnauth said.