INDIAN-MAURITIUS DOUBLE TAXATION AVOIDANCE TREATY AMENDMENT: ITS COMPLETE OVERVIEW
I. INTRODUCTION India-Mauritius Double Tax Avoidance Agreement (hereinafter ‘DTAA’) was signed on Aug. 24th, 1982 and made effective from Apr. 1st, 1983, with the objective to encourage trade between both the countries by offering tax rebates on the investments. Interestingly, it is pertinent to note that Mauritius has been a key provider of Foreign Direct Investment (hereinafter ‘FDI’) to India. The report published by the Ministry of Commerce reveals the data of cumulative foreign inflow from Apr. 2000 till Jun. 2015 i.e., Rs. 438,892 [1] crores, which has come from Mauritius. Further, Mauritius accounts for 35% of all the FDI during the last 15 years [2] . A. The D ouble Tax Avoidance Agreement/ Tax treaties: Its Purpose A tax treaty comprises of bilateral and multilateral [3] agreements between the countries, which facilitate income from cross-border transactions to obviate the potential territorial double taxation. Double taxation is a taxation principle where inc...