This was said Indian Finance Minister Pranab Mukherjee at the press Monday. Changes to the GAAR will become law until April 2013.
These are Indian lobbyists who lobbied to bring this amendment. Indian estimates, the Great Peninsula lost more than $ 600 million annually in revenue because of the Double Taxation Avoidance Agreement (DTAA) with Mauritius. According to the DTAA, in its current form, the profits in transactions between India and Mauritius are taxable in one jurisdiction. Investors benefit from the absence of the tax on capital gains to record companies in the offshore jurisdiction of Mauritius to avoid paying this tax.
This amendment could be a serious blow to the Mauritian offshore for 60 to 70% of offshoring activities in the country are in India.