The Problem Areas

The Problem Areas
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  • Under the treaty, Mauritius entities don't have to pay any tax on income from their India operations
  • Mauritius considers all firms registered there as local residents
  • Indians can re-route money stashed abroad via Mauritius and save taxes
  • Foreign firms can use this route to avail benefits under the DTA
  • India loses huge revenues because of the double taxation treaty, and now is renegotiating a few clauses.
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