The amendment to the over three decade old Double Taxation Avoidance Treaty (DTAA) between India and Mauritius has been seen as a progressive and much overdue tax reform measure. In another two years, an entity which is a resident of Mauritius, cannot avoid paying income tax on capital gains arising in India. This is expected to plug a huge source of revenue leakage and capital flight
http://southasiamonitor.org/detail.php?type=eco&nid=17093
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