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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
India and Mauritius agreed on revised tax treaty
Dec 10, 2013

Mauritius has agreed to sign "limitation of benefits" clause in the tax treaty with India to further ring-fence its jurisdiction from any attempts of round-tripping and money laundering activities. LoB clauses are typically aimed at preventing 'treaty shopping' or inappropriate use of tax pacts by third-country investors. 

The LOB clause limits treaty benefits to those who meet certain conditions including those related to business, residency and investment commitments of the entity seeking benefit of a Double Taxation Avoidance Agreement (DTAA). There is already a mechanism to prevent misuse of money laundering but the LOB clause will have the effect of bringing even more substance to companies which want to be tax resident. 

While a DTAA is already in place between two countries, it is being revised amid concerns that the Indian Ocean nation was being used for round-tripping of funds to and from India. 

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