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Recently, the Government of India and the Government of Mauritius signed a protocol for amending the Double Taxation Avoidance Agreement between the two nations (Mauritius tax treaty). A Press Release summarising the amendments to the tax treaty was issued by the Central Board of Direct Taxes on 10 May 2016.

As per the Press Release the Mauritius tax treaty has been amended to provide source-based taxation for capital gains.

As a fallout of the aforesaid amendment, the Double Taxation Avoidance Agreement executed between India and Singapore would also get impacted as the exclusive taxing rights granted to the resident state under the said convention are co-terminus with the Mauritius tax treaty.

Girish Vanvari, Head of Tax, KPMG in India along with our senior tax partners shall share their perspective on the above amendments.

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