Mauritius unwilling to review tax treaty, says Indian government
As far as India’s equity market is concerned, he said that the Sensex may bottom-out at the 12,000-16,000 level. “Rupee seems to be oversold in the near term. If the rupee depreciates by 10-20 per cent in the near term, it will also help the market,” he a
The Indian government on Tuesday said unwillingness on the part of the island nation is delaying the revision of the double tax avoidance treaty with Mauritius.
"Seven rounds of discussions have taken place so far. There was unwillingness on the part of Mauritius to co-operate in addressing this problem," Minister of State for Finance SS Palanimanickam said in a written reply in the Rajya Sabha.
He said consistent efforts are being made by the Indian Government to find mutually acceptable solutions for addressing India's concerns.
The government has proposed to review the India-Mauritius Double Taxation Avoidance Convention (DTAC) for prevention of treaty abuse and to strengthen the mechanism for exchange of information on tax matters between India and Mauritius.
He further said that during the visit of Mauritius Prime Minister Navinchandra Ramgoolam to India in February, the two countries had discussed wide-ranging bilateral, multi-lateral and regional issues of mutual interest and the DTAC matter also came up for discussion.
"During discussions between the two Prime Ministers, the Mauritian side submitted proposals to the Indian side. The proposal is under examination of the Indian side. Both sides agreed to continue discussion at the next JWG meeting, dates for which would be decided through diplomatic channels," he added.
The joint working group (JWG) was formed by governments of both countries in 2006 to put in place adequate safeguards to prevent misuse of the India-Mauritius treaty.