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The brand new provisions within the treaty embrace a precept function take a look at, which will likely be used to guage whether or not tax advantages below the treaty will apply to investments or not, in keeping with the textual content of the treaty launched by India’s overseas ministry.
As per the amended treaty, tax advantages for investments is not going to be granted whether it is ascertained that availing tax advantages was one of many causes of the transaction.
India’s finance ministry didn’t instantly reply to queries.
Funding into India by International Portfolio Traders (FPIs) from Mauritius stood at Rs 4.19 lakh crore ($50.20 billion), about 6% of complete the FPI investments as of March 2024, in keeping with knowledge from the Nationwide Securities Deposit
India and Mauritius entered into the so-called Double Taxation Avoidance Settlement in 1982 so non-residents traders can keep away from paying double taxes. The amended treaty goals to curb tax evasion and avoidance.
