Amid growing concerns over flow of black money into the country, India and Mauritius have agreed on convening a meeting of Joint Working group to renegotiate 28-year-old Double Taxation Avoidance Agreement (DTAA) treaty between the two countries.
This was stated by President Pratibha Patil while talking to reporters on board the special plane during her return from the five-day visit to the Island nation.
While terming her visit to this country as a success which ensured "deeper, strengthened and more diverse partnership", the President said Mauritius expects India to play an important role "which we are ready to fulfil." Listing the highlights of the visit, she said her discussions focused on a diverse range of issues covering multi-sectoral and vibrant bilateral partnership.
"While expressing satisfaction over the current state of our relations, we did feel that the already considerable and growing opportunities could be exploited particularly in the area of trade and economic cooperation.
"It was agreed to convene the next meeting of the Joint Working Group on the Double Taxation Avoidance Convention," she said.
President's comments assume significance in the backdrop of growing demand from Finance Ministry to re-negotiate the 1983 tax treaty with Mauritius so that India could have access to banking details besides tax related information.
The move was also aimed at preventing generation of black money and to stop re-routing of funds through Mauritius.
The Finance Ministry had recently asked the External Affairs Ministry to tighten the Double Taxation Avoidance Agreement (DTAA) between the two countries.
Re-negotiation includes specific provision of sharing of banking information and also an article on assistance in collection of taxes. Mauritius accounts for nearly 44 per cent of Foreign Direct Investment (FDI) into the country.
Security agencies have been raising concerns over use of the Mauritian route to pump in black money into India especially in the telecom and real estate sectors.
About her visit, the President said she had sought further consolidation and expansion of bilateral cooperation.
"I am confident that my interactions with the leadership of Mauritius will provide a greater momentum and thrust to our partnership," she said.
"We have agreed to enhance exchanges in the fields of higher education, information technology, science and technology, tourism, hospitality, culture, rural development and Ayurveda," she said.
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