Everything about the India-Mauritius tax treaty

THE ECONOMIC TIMES Thu, May 12, 2016 | 05:07 PM IST ET Special Newsletter

India-Mauritius pact: A landmark for tax transparency In what could be the beginning of a series of crackdowns, the India-Mauritius tax pact has been amended to plug suspected tax losses. Funds coming in from Mauritius will now have to pay capital gains tax. How will the move impact India's economy and markets?

New Mauritius treaty to hit investor sentiment: Jim Rogers India will become less attractive as an investment destination if FII investments made through Mauritius are subject to capital gains tax after April 2017. Why will someone not invest in India because of 7.5% tax, asks Jhunjhunwala Rakesh Jhunjhunwala says Mauritius treaty will be forgotten tomorrow and in time, Indian money will outnumber foreign currency. After Mauritius tax treaty, govt looking to rework pact with Singapore Singapore is the second-biggest source for foreign direct investments (FDI) into India after Mauritius, accounting for over 16% of cumulative inflows so far.

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Who gains, who loses in new tax pact with Mauritius? Will FIIs run away? India and Mauritius have signed a protocol amending the double tax avoidance arrangement. The protocol is the outcome of an extensive negotiation process . read more...

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India–Mauritius treaty to bring transparency, streamline investments In the last 10 years, India has received $239 billion of FDI inflows, out of this nearly $81.8 billion or 34% has come through Mauritius. Amended tax pact could realign India-Maurities ties: Nishith Desai India has a shallow debt market and it is likely that the country's debt markets will get a boost providing for a reduced tax rate on interest. Why govt's decision to amend tax treaty with Mauritius is commendable India's big concerns have been Indian entities using the Mauritius route to launder unaccounted wealth and manipulate stocks in India, and treaty shopping by foreigners. Mauritius should not spoil your mood. Here's why The amendment is negative for those FIIs who have a short-term view on equities, but it will have no impact on investors who have a horizon of over one year. Amendment to tax treaty with Mauritius a brilliant move: Vikas Khemani Uncertainty around the taxation on the foreign investment through tax heavens, especially Mauritius, has been bone of contention for long time. New Mauritius tax treaty make it easier for money to flow in: Geoff Lewis In an interview with ET, Hong Kong-based Lewis said India's fundamentals remain strong and stocks that will benefit from India's consumption story. Good, bad or ugly! Mauritius tax pact bad for short-term investors For the benefit of investors, the protocol provides for grandfathering of investments as the new regime will apply to shares acquired on or after April 1, 2017. Longest running saga in tax history may well be at end: Dinesh Kanabar Global sentiment has decidedly moved away, with the OECD coming out strongly against treaty abuse in its Base Erosion and Profit Shifting (BEPS) project. Lot of confusion about how things are going to move forward: Holland Nothing is going to happen overnight. It is not that foreign investors are going to start selling completely, right, said Holland. Revised tax treaty with Mauritius to curb round tripping: FM Replying to a debate on the Finance Bill in the Rajya Sabha, Jaitley said India has been trying to renegotiate the treaty with the island nation since 1996.

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