INDIA MAURITIUS TREATY IMPACT
MNCs in India fret as US yet to ratify global tax deal
Tax experts say the international tax treaty, which Republicans strongly oppose and requires a two-thirds majority in the US Senate to pass, faces significant challenges. Without US ratification, meeting the OECD tax deal's implementation conditions to reshape the global tax system becomes extremely difficult. The international tax treaty's implementation needs acceptance by 30 jurisdictions and the inclusion of the headquarters jurisdictions of at least 60% of the most profitable multinationals; given that many of these businesses are located in the United States, US participation is critical to attaining this level.
Mamata Banerjee objects to Teesta talks with Bangladesh without Bengal, Centre says claim 'false'
The Centre dismissed West Bengal's claim of not being consulted on the Internal Review of the India-Bangladesh Treaty of 1996 on Sharing of the Ganga/Ganges Waters at Farakka. The state government nominated the Chief Engineer for the committee and conveyed their 30-year demand. CM Mamata Banerjee expressed grievance over exclusion from talks with Bangladesh, emphasizing the importance of consultation.
India-UK FTA talks: Pending issues to be resolved after UK polls
The issues that need to be ironed out include duties in sectors like electric vehicles, alcoholic beverages and services. General elections in the UK will be held on July 4.
With neighbourhood leaders as guests, India focuses on Indian ocean region
India is inviting heads of state and government from Sri Lanka, Maldives, Mauritius, and the Seychelles to the swearing-in ceremony of the next Narendra Modi government on June 9. The focus is on the western and southern Indian Ocean (IOR), where India has been a security provider and first responder for decades. The other key overseas guests are Bangladesh, Nepal, and Bhutan, affirming long-standing ties and bolstering India's push to counterbalance Chinese influence in the immediate neighborhood.
India's Permanent Rep to UN Ruchira Kamboj signs off after almost four decades of service
Ruchira Kamboj, India's Permanent Representative to the United Nations, retired after a 35-year career. She was the first woman diplomat to hold this position and had a distinguished tenure in the Indian Foreign Service.
View: Tackling FTA attractions
India has resumed free trade negotiations with trading partners after withdrawing from the Regional Comprehensive Economic Partnership (RCEP) negotiations in 2019. The process has been restarted with the signing of India-Mauritius Comprehensive Economic Cooperation and Partnership Agreement (CECPA) in March 2021, followed by India-UAE Comprehensive Economic Partnership Agreement (CEPA), India-Australia Economic Cooperation and Trade Agreement (ECTA) in 2022, and India-European Free Trade Association (EFTA) pact in February this year.
- Go To Page 1
FPIs take out Rs 22,000 crore from equities in May amid poll jitters, Chinese mkt outperformance
Foreign investors have pulled out a massive Rs 22,000 crore from Indian equities so far this month, due to uncertainty surrounding the outcome of the Lok Sabha elections and outperformance of Chinese markets.
FPIs withdraw Rs 17,000 crore from equities in May so far on political uncertainty
This was way higher than a net withdrawal of Rs 8,700 crore in the entire April on concerns over a tweak in India's tax treaty with Mauritius and a sustained rise in US bond yields
India to formally convey to ATCM its plans to built new research station in Antarctica
India plans to announce its plans to develop a new research station in Antarctica at the 46th Antarctic Treaty Consultative Meeting (ATCM) and the 26th Meeting of the Committee for Environment Protection. The station, Maitri, is expected to be revamped and turned into a summer camp and monument. The ATCM also aims to regulate tourism in Antarctica, the Earth's only continent without an indigenous population.
FPIs withdraw over Rs 5,200 crore in April so far amid tweaks in tax treaty with Mauritius
Foreign investors dumped domestic equities worth over Rs 5,200 crore in April so far on concerns over tweaks in India's tax treaty with Mauritius, which would now impose higher scrutiny on investments made here via the island nation.
BIPAs vs FTAs: Balance of trade rests on finding an equitable equation
Both types of trade agreements have their merits and demerits. The government has to find the right mix to ensure investments that come into the country benefit the domestic economy in the long run.
War and trade: As Iran-Israel conflict intensifies, India’s trade vulnerability rises
The Israel-Hamas conflict had already inflated freight cost from $1,000 to $6,000. Now with Iran directly entering the conflict, India’s MSME sector is staring at an economic bloodbath as freight costs are likely to rise to $9,000-12,000, say small traders.
Waning Mauritius FPI flows may limit tax treaty change impact
The share of funds domiciled in Mauritius in the total FPI equity assets under management (AUM) dropped to 5.61% in March 2024 compared with 14.53% five years ago, the data from NSDL showed. Consequently, Mauritius-based funds become the fourth largest investor by geography after the US(41.7%), Singapore (7.64%), and Luxembourg (7.15%).
CBDT ready to address queries on Mauritius DTAA update
The clarification follows concerns by tax experts over the agreement opening past investments to scrutiny from tax authorities at the time of exit following the protocol, which was inked on March 7. A key concern expressed by experts is about reopening of past cases in view of the amended provision.
Yet to be notified: Income Tax authority addresses India Mauritius DTAA Amendment concerns
“Some concerns have been raised on the India Mauritius DTAA amended recently. In this context, it is clarified that the concerns /queries are premature at the moment since the Protocol is yet to be ratified and notified u/s 90 of the Income-tax Act, 1961,” the Central Board of Direct Taxes said on ‘X’.
I-T department issues clarification regarding India-Mauritius tax treaty
The department said that the Protocol pertaining to the amendment is yet to be ratified and notified under Section 90 of the Income-tax Act, 1961. Until this Protocol comes into force, any queries or concerns regarding the amendments will be addressed as and when necessary, said the I-T department.
Mauritius issue begins to haunt foreign investors as FPIs pull out nearly $1 billion from Indian stocks
India and Mauritius have agreed to a protocol to alter a double taxation avoidance agreement (DTAA) stating that tax relief cannot be for the indirect benefit of residents of another country. As a result, all FPIs will have to examine whether they have enough commercial rationale to be based in Mauritius when the tax scrutiny happens.
Amended India-Mauritius tax treaty will not be applied retrospectively: Report
The new provisions in the treaty include a principle purpose test, which will be used to judge whether tax benefits under the treaty will apply to investments or not, according to the text of the treaty released by India's foreign ministry.
Can taxation treaty amendment lead to sizable reduction in flows from Mauritius? Deloitte’s Rajesh Gandhi explains
Rajesh Gandhi from Deloitte India explains the implications of including Mauritius in the PPT requirement, affecting investments pre-2017. Uncertainty looms over treaty benefits and potential challenges for entities choosing Mauritius for non-tax reasons.
Should investors worry about India-Mauritius tax treaty amendments? Punit Shah answers
There is another provision like principal purpose test or MLI which further requires that the FPIs or any other investors which are based in Mauritius need to have a commercial rationale or a justification to be organised or to be based in Mauritius.
No more loopholes, only fair taxation
India and Mauritius amend tax treaty to comply with international conventions, targeting tax losses. Changes emphasize investment facilitation, anti-avoidance, with potential impact on capital flows, serving as a global amendment template.
India, Mauritius sign protocol to amend tax treaty; principal purpose test introduced
Tax experts said a new article has been added to the protocol "Article 27B Entitlement to Benefits". The amended protocol was signed on March 7 and made public now.
Govt ends easy tax relief for Mauritius-based FPIs
This limitation on third-party countries will be a concern, along with the new requirement to demonstrate that tax relief is not one of the principal purposes of the investment, said experts.
PMO calls for improvement in text of bilateral funding treaties
The Prime Minister's Office has tasked the commerce and industry ministry with reviewing the bilateral investment treaty (BIT) template to bolster India's appeal as an investor-friendly destination. The ministry plans to consult experts to address concerns over investor-state dispute resolution, aiming to refine the BIT text to align with India's interests and international norms.
IPL 2024 in Mauritius: Where can you get score updates, highlights, and all interesting developments of Indian Premier League?
IPL 2024 will begin on March 22, 2024, and the inaugural match itself will be very exciting because the RCB strengthened their squad in the IPL 2024 auction by acquiring foreign and Indian players such as Alzarri Joseph, Yash Dayal, Tom Curran, Lockie Ferguson, Swapnil Singh and Saurav Chauhan.
Mauritius to amend DTAA with India
The amendment, which is in sync with the ongoing global tax agreement, will discourage existing source-based tax exemptions claimed by the companies and will make it difficult for them to abuse the tax treaty purely for treaty shopping. The Base Erosion and Profit Shifting rules under 'pillar two' model are crafted to ensure large MNCs pay a minimum level of tax on income arising in each jurisdiction they operate in.
India signs BIT with UAE to further promote investments
India and the UAE signed a Bilateral Investment Treaty (BIT), witnessed by Prime Minister Narendra Modi and UAE's President Sheikh Mohamed bin Zayed Al Nahyan. The treaty aims to facilitate investments in both countries, boosting confidence among investors and fostering foreign direct investment opportunities.
India taking steps to safeguard vessels in Red Sea: Piyush Goyal
Piyush Goyal discusses bilateral investment treaties and the importance of negotiating from a position of strength. He mentions concerns about the Red Sea situation and the potential impact on exports. Goyal believes that India will become the largest market for aircraft in the next 20-25 years, attracting manufacturers. The budget focuses on infrastructure investment to stimulate growth and boost multiple industries. The PLI scheme is expanding, with new sectors to be included based on their gestation period.
India negotiating bilateral investment treaties with different countries: FM Nirmala Sitharaman
India is negotiating bilateral investment treaties with different countries with a view to promote foreign inflows, Finance Minister Nirmala Sitharaman said on Thursday. She said that foreign direct investment (FDI) has doubled during 2014-23 to USD 596 billion compared to the inflow received during 2005-14.
Load More
