The negotiations on the double taxation avoidance agreement (DTAA) between India and Mauritius are in advanced stage and the pact would be revised soon, Finance Ministry said today.
"DTAA treaty (with Mauritius) is in very advanced stage of negotiation. It is progressing in a very constructive manner. And we expect it would be concluded in the near future," Revenue Secretary Shaktikanta Das told reporters here.
Negotiations to amend the Indo-Mauritius double taxation avoidance convention have been hanging fire for a long time amid concerns that Mauritius is being used for round-tripping of funds into India even though that country has always maintained that there has been no concrete evidence of any such misuse.
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A Joint Working Group (JWG) has been set up by the two countries to find a mutually acceptable solution. Mauritius is one of the top sources of Foreign Direct Investment into India.
Last month, Mauritius had submitted a draft protocol which would be used as a basis to finalise the discussions.
Investments from Mauritius to India have totalled USD 87.55 billion since April, 2000.
