India-Mauritius tax treaty amendment

India-Mauritius Tax Treaty Amendment: What You Need to Know

India and Mauritius shake up tax regulations with a new treaty! Find out more about this game-changing agreement.

The India-Mauritius tax treaty amendment has been making waves as the Income Tax Department confirms that the revised protocol on double taxation avoidance is yet to be ratified and notified. The amended agreement aims to address tax evasion and avoidance issues by implementing a principal purpose test to determine the validity of transactions. Sources suggest that the treaty is unlikely to have retrospective taxation, relieving concerns of businesses operating between the two countries.

Furthermore, the recently signed protocol between India and Mauritius intends to combat tax evasion, with CNBC-TV18 reporting that retrospective taxation will not be applied. The clarified stance by the Indian Income Tax Department emphasizes that concerns over the amendment are premature.

In conclusion, the revised India-Mauritius tax treaty is set to revolutionize tax regulations between the two nations, ensuring fair and transparent financial practices. The agreement's enforcement, once ratified, will mark a significant milestone in bilateral economic relations, setting a precedent for future tax treaties.

Interesting Fact: The amended protocol includes a principal purpose test to prevent treaty abuse for tax evasion or avoidance.

Did You Know? The revised India-Mauritius tax treaty will only come into effect once officially signed by both countries, eliminating the possibility of retrospective taxation.