India and Mauritius agreed to push forward their negotiations for a long pending revision of Double Taxation Avoidance Treaty (DTAT), asserting that their objective is to prevent the “abuse” of the convention. Prime Minister Narendra Modi and his Mauritian counterpart Sir Anerood Jugnauth expressed their resolve during the talks in Port Louis. India has offered $500 million concessional line of credit to this island nation for key infrastructure projects. 

“We appreciate that already India postponed the consideration of the GAAR until 2017. However, we have stressed on the initiatives taken by Mauritius to build substance within our offshore jurisdiction. I have requested PM Modi to give his full support on the DTAA as it is of prime importance for our global business sector,” Mauritian Prime Minister Sir Anerood Jugnauth said. Sir Anerood said the Preferential Trade Agreement signed in August 2006 to further enhance market access should be reviewed and that the two countries have agreed on the way forward.

Mr. Modi said that the two sides have agreed to continue negotiations for a revised treaty based on shared objectives to prevent the “abuse” of the convention. Mr. Modi said the two countries should resume their discussions on Comprehensive Economic Partnership Agreement.

By Premji