Mauritius hopes DTAA revision issues will be sorted out
India has been pressing for re-negotiation of its DTAA with Mauritius, seeking to plug loopholes and revenue leakage by way of alleged round-tripping and tax evasion.
By PTI | Updated:
NEW DELHI: Assuring all help to India in tax- related investigations, Mauritius on Tuesday exuded confidence that issues concerning revision of the existing Double Taxation Avoidance Agreement (DTAA) with New Delhi would be sorted out.
"There have been a lot of advantages (of DTAA), a win-win situation for both nations. Certainly, there are certain number of things which have to be cleared. "And, I have no doubts that there will be some formal cooperation that will continue and that will again result in a win-win situation," Mauritian Minister for Commerce, Industry and Consumer Protection, Cader Sayed Hossen said.
He was speaking to reporters after meeting Commerce and Industry Minister Anand Sharma here. "There has been a lot of talk about the DTAA which unfortunately have presented that thing in a negative mode," he added.
India has been pressing for re-negotiation of its DTAA with Mauritius, seeking to plug loopholes and revenue leakage by way of alleged round-tripping and tax evasion.
To a query on how the island nation was helping India in its tax-related investigations, Hossen said: "In a very simple way, by having open doors...we have done everything to help the Indian government to investigate in cases it wished to investigate and we will continue to do so."
He, however, stressed that "our off-shore jurisdiction is not at all rated a tax haven contrary to a number of other countries... we have very stringent regulations in terms of banking...whether it be on shore or off shore".
Nearly 42 per cent of FDI into India comes through Mauritius. Likewise about 40 per cent of the FII fund flow into the country is believed to be routed through the island nation. A large majority of them are third country investors, who are believed to use the DTAA for saving capital gains tax.
According the the DTAA, capital gains from sale of shares by Mauritius residents in India would be liable to tax only in their country and vice-versa.
"There have been a lot of advantages (of DTAA), a win-win situation for both nations. Certainly, there are certain number of things which have to be cleared. "And, I have no doubts that there will be some formal cooperation that will continue and that will again result in a win-win situation," Mauritian Minister for Commerce, Industry and Consumer Protection, Cader Sayed Hossen said.
He was speaking to reporters after meeting Commerce and Industry Minister Anand Sharma here. "There has been a lot of talk about the DTAA which unfortunately have presented that thing in a negative mode," he added.
India has been pressing for re-negotiation of its DTAA with Mauritius, seeking to plug loopholes and revenue leakage by way of alleged round-tripping and tax evasion.
To a query on how the island nation was helping India in its tax-related investigations, Hossen said: "In a very simple way, by having open doors...we have done everything to help the Indian government to investigate in cases it wished to investigate and we will continue to do so."
He, however, stressed that "our off-shore jurisdiction is not at all rated a tax haven contrary to a number of other countries... we have very stringent regulations in terms of banking...whether it be on shore or off shore".
ADVERTISEMENT
Nearly 42 per cent of FDI into India comes through Mauritius. Likewise about 40 per cent of the FII fund flow into the country is believed to be routed through the island nation. A large majority of them are third country investors, who are believed to use the DTAA for saving capital gains tax.
According the the DTAA, capital gains from sale of shares by Mauritius residents in India would be liable to tax only in their country and vice-versa.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
Related Articles
Lenskart shares in focus after Viridian completes stake transfer from Copthall Mauritius2026-06-08T03:40:33Z- US overtakes Mauritius to become India’s 2nd largest FDI source as inflows cross $11 billion mark2026-05-24T08:02:20Z
- Mauritius Fund buys 5 crore shares of Davangere Sugar via bulk deal2026-05-17T05:01:47Z
ADVERTISEMENT
