Indo-Mauritius Treaty: Road Ahead

By: Pranay Bhatia, Associate Partner, Economic Laws Practice (ELP)

Post liberalization of FDI Policy, there has been a substantial increase in the foreign investment into India. It is estimated that approximately 40% of the foreign investment is from Mauritius, primarily because of the beneficial tax provisions. However, this has lead the tax department to allege Treaty Shopping. Thus, the Indian Government intended to amend the Tax Treaty between India and Mauritius (