MAURITIUS DTAA MAY BE FINETUNED TO SURVIVE TAXHOUNDS

The controversial Double Tax Avoidance Agreement (DTAA) between India and Mauritius is likely to survive despite pressure from the income-tax authorities. The pact may be re-worked, but not scrapped, thanks to the lobbying by a high- level delegation headed by Mauritius Prime Minister Navinchandra Ramgoolam. The pact, crucial for Foreign Institutional Investors (FIIs) investing in India, has been facing an uncertain future since the revenue department in the finance ministry has opposed to loopholes that allow exploitation of the pact by intended beneficiaries. Several foreign companies, for example, have invested in India through what is known as the Mauritius route.