INDIA, MAURITIUS UPDATE TAX TREATY TO TACKLE EVASION CONCERNS.
Why in the news?
India-Mauritius tax treaty amended to prevent tax evasion, impacting investments; concerns raised over treatment of past investments.
source:reseauvoltaire
Understanding India-Mauritius Tax Treaty Amendment:
- India has signed a protocol amending the Double Taxation Avoidance Agreement (DTAA) with Mauritius to prevent tax evasion or avoidance.
- The amended pact includes the Principal Purpose Test (PPT), ensuring that tax benefits under the treaty won’t apply if obtaining them was the primary purpose of a transaction.
- Article 27B in the treaty defines entitlement to benefits, denying treaty benefits where obtaining them was a principal purpose of the transaction.
About Double Taxation Avoidance Agreement (DTAA) :
Importance of DTAA:
Recent Amendment:
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