Tax Hotline
July 05, 2006
Finance Minister on India-Mauritius tax treaty
Yesterday, based on a media report, we sent out an alert that the Indian Government is proposing to re-negotiate the India-Mauritius tax treaty and introduce a limitation of benefits clause to prevent its misuse.
Today, the Indian Finance Minister, Mr.P.Chidambaram has clarified that this is a sensitive matter for Mauritius. He said that they are trying to negotiate and he cannot take unilateral decision in this regard. There are political and diplomatic sensitivities. He made it clear that nobody can take unilateral decision in a matter as sensitive as Indo-Mauritius treaty.
At this stage, there is no indication that the Mauritius government will agree to such a proposal. Further, there are some tax treaties which India has with other countries under which similar capital gains tax exemption is available, without any conditions. This would make it more difficult for India to re-negotiate the treaty with Mauritius.
- Daksha Baxi & Shefali Goradia
Source: The Economic Times, July 5, 2006
Disclaimer
The contents of this hotline should
not be construed as legal opinion. View detailed disclaimer.
This hotline does not constitute a
legal opinion and may contain information generated
using various artificial intelligence (AI) tools or
assistants, including but not limited to our in-house
tool,
NaiDA. We strive to ensure the highest quality and
accuracy of our content and services. Nishith Desai
Associates is committed to the responsible use of AI
tools, maintaining client confidentiality, and adhering
to strict data protection policies to safeguard your
information.
This hotline provides general information
existing at the time of preparation. The Hotline is
intended as a news update and Nishith Desai Associates
neither assumes nor accepts any responsibility for any
loss arising to any person acting or refraining from
acting as a result of any material contained in this
Hotline. It is recommended that professional advice
be taken based on the specific facts and circumstances.
This hotline does not substitute the need to refer to
the original pronouncements.
This is not a spam email. You have
received this email because you have either requested
for it or someone must have suggested your name. Since
India has no anti-spamming law, we refer to the US directive,
which states that a email cannot be considered spam
if it contains the sender's contact information, which
this email does. In case this email doesn't concern
you, please
unsubscribe from mailing list.
|