Treaty between India and Mauritius – Treaty shopping not factor in foreign direct investment proposals from Mauritius, according to India's Foreign Investment Promotion Board

The Indian tax authorities appear to be facing a setback in their attempts to scrutinize the use of the India-Mauritius tax treaty by Foreign Institutional Investors.

The tax authorities campaign against "treaty shopping" has endured setbacks over the years such as the Circular of 13 April 2000 issued by the Central Board of Direct Taxes, which granted the benefit of the India-Mauritius treaty to foreign institutional investors and other investor funds on the ba…