Mauritius tax agreement - CapitalVia Global Research

India and Mauritius have signed a protocol amending the double tax avoidance arrangement between the two countries.

Views of Mr. Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.

"With this change, the capital gains tax concession for investments from Mauritius into India gradually comes to an end. Further, this will also impact the similar benefit under the India-Singapore treaty. However, there is still one year of time before implementation and will provide more clarity going forward. Although, the decision can impact on short term sentiment but we doubt it will impact long term investor fund to coming into the India because of this considering the fact that for FIIs, investing in listed shares on the stock market, capital gains on shares held for more than 12 months would any way continue to be exempt from tax. And the way the treaty changes implementation has been thought off is well designed so it is not likely will create an immediate impact on FIIs inflow. However, we may see short term volatility to increase in Indian share prices which should come down gradually with more clarity."

Source : Equity Bulls

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