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Investors from Mauritius to India get tax relaxation

Mauritius based companies that have invested in India have a cause to applaud as a valid Tax Residency Certificate (TRC) can get them exemption from paying capital gain tax on exciting Indian investments. The Authority of Advance Ruling (AAR) has upheld the validity of the TRC.

TRC is a certificate of residency of the investors. Having such a certificate establishes proof that the company concerned is resident of Mauritius.

In a significant ruling, the AAR has allowed Mauritius based Dynamic India Fund (DIA) to get the benefit of the treaty as it had a valid TRC from the Mauritius revenue authority.

Mauritius is a prime FDI provider to India. It has also the preferred jurisdiction for Indian outward investments into Africa. Mauritius is the single largest source for FDI into India. The FDI inflows from Mauritius have been US$ 64.80 billion, which constitutes 37.64 percent of the total FDI inflows from the country. Indian investment in Mauritius amounts to about US$ 14.33 billion.