It has been reported that Mauritius has not agreed to an amendment to the India-Mauritius tax treaty (the treaty).
Under the current treaty, capital gains earned by residents of a contracting state from sources in the other contracting state, are taxable only in the state of residence. Thus, capital gains earned by a Mauritian resident from the disposal of shares in Indian companies are taxable only in the country of residence, i.e. in Mauritius and not in Ind…