India in talks with Mauritius on tax treaty issues: finmin official

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Reuters NEW DELHI
Last Updated : Dec 03 2015 | 10:48 AM IST

NEW DELHI (Reuters) - India is discussing a whole host of issues with Mauritius including ways and means of ensuring that a tax treaty with the island nation is not misused, Akhilesh Ranjan, a joint secretary in the tax department told reporters on Thursday.

Earlier, in October, Mauritius finance minister had told Reuters they were in talks to review a tax treaty that had made the island the biggest single source of foreign direct investment in India.

But the treaty's terms have been a growing irritant to India, which says a chunk of the funds are not real foreign investment but Indians routing cash through the island to avoid Indian taxes.

(Reporting by Rajesh Kumar Singh; Editing by Swati Bhat)

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First Published: Dec 03 2015 | 10:42 AM IST

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