Mauritius for tax pact with India

Mauritius is not a tax haven like a lot of other countries and the double taxation avoidance agreement (DTAA) is not a deterrent but favourable for both India and Mauritius, said Cader Sayed Hossen, Mauritian minister for commerce, industry and consumer protection.

“There has been a lot of talk about the DTAA which unfortunately has presented that thing in a negative mode. There have been a lot of advantages, a win-win situation for both nations,” Hossen said.

He, however, agreed that there are a certain number of issues which have to be discussed between the governments and both the governments will continue to co-operate with each other.

The two countries have been discussing DTAA for more than a decade and hardly any progress has been made in this direction.
Experts believe that since most of the FDI comes through this route and the Mauritian government also gains by the presence of these companies as they avail various services from the government and the corporate, it is unlikely that any fundamental amendment is going to happen here.

Narendra Rohira, tax partner Ernst & Young, said, “The Indian government may introduce the general anti-avoidance rules which means it will be allowed to check the commercial purpose and substance of a company.”