Mauritius has reportedly agreed to re-negotiate and revise the existing Double Taxation Avoidance Agreement (DTAA) with India, sending the Indian stock market tumbling on Monday.
The countries are expected to meet soon to work out the details of the new DTAA, the Central Board of Direct Taxes (CBDT) chairman Prakash Chandra was quoted as saying.
Reports also said that India will press for the imposition of capital gains tax in India on investments made in the country routed through Mauritius.
The negotiations with Mauritius on amending the DTAA are expected to resume soon, after a gap of around three years, Chandra has been quoted as saying.“India wants that it (capital gains tax) should be imposed where source originates, and the source is India because gains are in India. As per the (present) treaty, it is with the resident country, which is Mauritius. It does not impose capital gains tax,” he |
|
|
No comments:
Post a Comment