Mauritius and India agree On Tax Decision

Moneylender and round- tripping of funds and exercise under the rein of India and Mauritius have agreed to changes in the tax agreement . The Double Taxation Avoidance Agreement under changes ( DTAA ) Limiteshn of the benefits ( Elobi ) clause to be added.

Use this clause " treaty shopping" treaty between the two countries by investors in other countries is to prevent abuse . Elobi under clause is used to limit the benefits of the treaty . DTAA agreement, the company seeking to take advantage of this clause in its business and investment commitments have to follow certain conditions .
Mauritius Financial Services Commission ( FSC) Chairman Mark Hein said the tax treaty between the two countries have agreed to add a clause to the benefit of Limiteshn . FSC of Mauritius-based global companies and non- banking financial services sector is integrated regulator . Hein said that such companies will benefit from Elobi clause , which is tax resident of Mauritius to live . Mechanisms already exist to prevent abuse of the treaty but has concerns the new clause of the Indian administration .
With illicit funds for investment in India Mauritius DTAA treaty due to allegations of abuse to the treaty , both countries are reviewed . Fears were expressed that the round- tripping of funds is going the way of Mauritius