India and Mauritius will meet next month in the capital to review the bilateral Double Taxation Avoidance Convention (DTAC) which seeks to prevent misuse of the provisions of the near three-decade old treaty.
New Delhi: India and Mauritius will meet next month in the capital to review the bilateral Double Taxation Avoidance Convention (DTAC) which seeks to prevent misuse of the provisions of the near three-decade old treaty.
During his meeting with Mauritius Prime Minister Navinchandra Ramgoolam at Port Louis, commerce and industry minister Anand Sharma expressed hope the two nations will be able to move forward on the issue at the Joint Working Group (JWG) meeting.
"He (Sharma) expressed the hope that the Joint Working Group on Double Taxation Avoidance Convention (DTAC), which is scheduled to meet in February, 2013, would be able to take the deliberations forward," an official release said. An official said India is likely to press for changes in the treaty so that information regarding source based taxation of capital gains could be shared between the tax authorities.
India will also pitch for incorporating benefit limitation clauses in the agreement with a view to prevent 'treaty abuse'. Dates will be finalised soon, the official added. The JWG comprising members from the two sides was constituted in 2006 to put in place adequate safeguards to prevent misuse of the DTAC.
Eight rounds of discussions have taken place so far. India has said that it is making consistent efforts to find mutually acceptable solution for addressing the concerns. The DTAC, notified in 1983, provides for taxation of capital gains arising from alienation of shares only in the country of residence of the investor.