According to a professional, the concept of Permanent Establishment for companies that have set up shop with an office in India. The proposal should, in principle, provide more substance to our offshore center. Serve the country and not of actual companies and mailboxes, as the authorities and the Indian media often accuse Maurice. Under the current provisions of tax treaty, a Mauritian company which would have a foothold in India shall be subject to tax on capital gains (capital gain). Currently, a Permanent Establishment in India installed is subject to all taxes.
Featuring the tax treaty, it would be exempt from capital gains tax. The new application of the Mauritian authorities makes the renegotiation of the treaty more difficult, according to Indian press.
Indian authorities increasingly fear that foreign companies become residents of Mauritius on paper only benefit from the power tax treaty. The capital flows from Mauritius to India already accounts for 40% of foreign capital. Great Peninsula should recognize and appreciate the contribution of Maurice for foreign investment flows into India through the transmission belt that represents the country .