There have been talks in media that the Mauritius government has
agreed to restart talks of revising the Double Taxation Avoidance
Agreement (DTAA) treaty with India and both the countries are
expected to meet soon to discuss the issue, reports CNBC-TV18.
Following these reports, stock investments from the latter country
are under pressure.
More than 40% of India's total foreign direct investments
(FDIs) come in from Mauritius. Siddharth Shah, head of corporate
and securities practice at Nishith Desai Associates, said that it
is too early to press the panic button. "Mauritius
renegotiating tax treaty is not confirmed yet. However, it is
wiling to discuss concerns regarding the treaty."