Mauritius | Finances

December 20, 2011

Indian Delegation Arrives To Discuss DTAA

An Indian delegation, comprising high rung government officials is reaching Mauritius on Tuesday to participate in the Double Tax Avoidance Agreement (DTAA) negotiations between the two countries.

This will take place from Wednesday to Friday at the Foreign Affairs ministry, which comes under the aegis of Arvin Boolell.

Finance minister Xavier-Luc Duval, whose ministry will play a key role in the negotiations, stated on Monday, “There is a lack of visibility concerning Foreign Direct Investment (FDI) in India. The DTAA is highly beneficial to India as well.”

Earlier during the month he had commented that this topic is a touchy subject for both parties. The DTAA aims to mainly address the issue of ’round tripping’ involving black money from India being laundered in Mauritius to be invested back in India.

According to sources familiar with the dossier, as of now, the DTAA is meagerly beneficial to India compared to Mauritius. Both parties will thus try to find a consensus, which will most probably amend the DTAA, existent since three decades between the two countries.

Around 42 per cent of FDI flows into India are routed through the island.

Text by the Independent
 

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