Mauritius treaty being amended

After six years of deliberations, Mauritius has finally agreed to tweak its tax treaty with India to
address the issue of round tripping of funds. However, the affirmation came with a rider that
any domestic legislation like the General Anti-Avoidance Rules (GAAR) should not override the
treaty. Mauritius has proposed a limitation of benefit (LoB) clause in the three-decade old double
taxation avoidance agreement (DTAA) between the two countries. The clause limits tax benefits
under the treaty to resident investors who fulfill certain conditions. India's treaty with Singapore
has this clause.