Abstract

The caselet explores the loopholes in the double taxation treaties that India has with various countries. It looks into why changes in the Indo-Mauritius Double Taxation Avoidance Convention are necessary if mass evasion of taxes by FIIs is to be prevented and specifically draws attention to the revenue losses that India has incurred due to the treaty with Mauritius.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Tax exemption under the Indo-Mauritius Double Taxation Avoidance Convention (DTAC)
• Is there tax evasion due to loopholes in Indo-Mauritius Double Taxation Avoidance Treaty?
• Changes in the treaty that the Indian government is considering
• Are investors evading taxes as they route their investments into the Indian stock market through Mauritius?
• and Is Mauritius the preferred destination for huge amounts of black money generated in India?

Keywords

Authority for Advanced Ruling (AAR), Double Taxation Avoidance Treaty (DTAT), Indian stock markets, Foreign Institutional Investor (FII), Association of South-East Asian Nations (ASEAN), Securities and Exchange Board of India (SEBI)