Clause holds up India-Mauritius tax treaty review

The India-Mauritius Double Taxation Avoidance Agreement (DTAA) review is stuck over differences between the two sides on the type of limitation of benefits (LoB) clause to be inserted in the tax treaty.The Mauritian government has suggested a "different type" of an LoB clause under the Double Taxation Avoidance Convention (DTAC) than what India has with Singapore. "Every LoB is not the same. There are various types of LoBs. There can be an LoB where expenditure can be on an annual basis," Rama Sithanen, chairman of International Financial Services Ltd, told Business Standard. He is former finance minister of Mauritius.The Indian government, however, wants the LoB provision in the India-Mauritius DTAA to be similar to what it has with Singapore.

Source : Business Standard