2:39 PM
Unknown
| The finance ministry hopes talks with Mauritius on the Double Tax Avoidance Agreement (DTAA) would restart before September. I Think there may be some talks before September, said Central Board of Direct Taxes (CBDT) Chairman Prakash Chandra on the sidelines of a function to commemorate 150 years of the income tax department. He said the finance ministry had requested the external affairs ministry to take steps to restart the talks. “They are coordinating with the Mauritian government. No date has been firmed up as yet,” he said, adding discussions were expected on all issues. According to the DTAA, capital gains from sale of shares by residents of Mauritius in India would be liable to tax only in that country. As Mauritius does not have capital gain tax, there is no burden on investors routing money to India through circuitous route. The war against black money has to be addressed both domestically and through crossborder measures. While fostering an environment of voluntary compliance would help, there was also a need for putting in place measures to ensure that the recalcitrant tax evaders were brought to book. Better global cooperation should continue through agreements on tax information exchange and mutual cooperation to track evaders taking shelter abroad and I hope the direct tax-to-gross domestic product ratio would rise beyond the present 6.1 per cent. |