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The '''Mauritius route''' is a channel used by foreign investors to invest in India. [[Mauritius]] is the main provider of [[foreign direct investment]] (FDI) to India and also the preferred jurisdiction for Indian outward investments into [[Africa]]. In fact 39.6% of FDI to India came from Mauritius between 2001 and 2011.<ref>{{cite news|title=Factsheet on FDI Inflow to India|date=December 2011|publisher=Government of India, Ministry of Commerce and Industry|url=http://dipp.nic.in/English/Publications/FDI_Statistics/2011/india_FDI_December2011.pdf|page=5|accessdate=11 July 2012}}</ref><ref name="gov.mu"/>

==Business organisations of Mauritius investing in India==
Nine of the 10 largest foreign business organizations or companies investing in India (from April 2000–January 2011) are based in Mauritius.<ref name="dipp.nic.in">{{cite web|url=http://dipp.nic.in/English/Investor/TopTenInvestors.pdf|title=TOP 10 FDI EQUITY INFLOW CASES FROM APRIL 2000|url-status=dead|archiveurl=https://web.archive.org/web/20150219020121/http://www.dipp.nic.in/English/Investor/TopTenInvestors.pdf|archivedate=2015-02-19}}</ref> List of the ten largest foreign companies investing in India (from April 2000–January 2011) are as follows:<ref name="dipp.nic.in"/>
# TMI Mauritius Ltd. -> Rs 7294 crore/$1600 million
# Cairn UK Holding -> Rs6663 crores/$1492 million
# Oracle Global (Mauritius) Ltd. -> Rs 4805 crore/$1083 million
# Mauritius Debt Management Ltd.-> Rs 3800 crore/$956 million
# Vodafone Mauritius Ltd. – Rs 3268 crore/$801 million
# Etisalat Mauritius Ltd. – Rs 3228 crore
# CMP Asia Ltd. – Rs 2638.25 crore/$653.74 million
# Oracle Global Mauritius Ltd. – Rs 2578.88 crore / $563.94 million
# Merrill Lynch(Mauritius) Ltd. – Rs 2230.02 crore / $483.55 million
# Name of the company not given (but the Indian company which got the FDI is Dhabol Power company Ltd.)

==Financial services sector==
Since the inception of its financial services sector, Mauritius has taken all appropriate steps to safeguard the credibility of its jurisdiction. Mauritius has a stringent legal and regulatory framework recognized by the [[International Monetary Fund]], [[Financial Stability Board]] and the [[Organisation for Economic Co-operation and Development]] (OECD) to combat [[money laundering]]. Furthermore, Mauritius appears on the OECD White List of Jurisdictions that have substantially implemented the internationally agreed tax standards. A recent{{when|date=February 2019}} peer review of Mauritius by the OECD Global Forum, further upholds that Mauritius has all the essential elements in place for an effective exchange of accounting, banking, and ownership/identity information with other countries. Mauritius is also compliant with norms prescribed by [[International Organization of Securities Commissions]], [[Iowa Interstate Railroad]], [[Financial Action Task Force on Money Laundering]] and the [[Basel Committee]] and has enacted necessary legislation. In this regard, the Mutual Assistance in Criminal and Related Matters Act and the Financial Intelligence and Anti-Money Laundering Act 2002 which provides a framework for exchange of information on money laundering with members of international financial intelligence groups are cases in point. The Asset Recovery Act was promulgated to enlarges the scope for [[Asset freezing|freezing ill-gotten assets]].<ref name="gov.mu"/>

==Double Taxation Avoidance Agreement (DTAA)==
India has comprehensive [[Double Taxation Avoidance Agreement]]s (DTAAs) with 88 countries.<ref>{{cite news|url=http://pib.nic.in/newsite/erelease.aspx?relid=93330|title=International Taxation (DTAA Comprehensive agreements – With respect to taxes on income)|publisher=Income Tax department, Government of India |accessdate=11 July 2012}}</ref> This means that there are agreed rates of tax and jurisdiction on specified types of income arising in a country to a tax resident of another country. Under the [[The Income-tax Act, 1961|Income Tax Act 1961]] of India, there are two provisions, Section 90 and Section 91, which provide specific relief to taxpayers to save them from [[double taxation]]. Section 90 is for taxpayers who have paid the tax to a country with which India has signed DTAA, while Section 91 provides relief to tax payers who have paid tax to a country with which India has not signed a DTAA. Thus, India gives relief to both kind of taxpayers.

According to the [[tax treaty]] between India and Mauritius, capital gains can only be taxed in Mauritius, the same treaty exist with 16 other countries. Thanks to its low 3% [[capital gains tax]], quality regulatory framework, professional labor, geographical proximity, cultural affinities, and historical ties with India, Mauritius is the most attractive conduit for investments into India.<ref name="gov.mu">{{cite news |title=Issues Pertaining to the Indo–Mauritius Double Taxation Avoidance Convention |url=http://www.gov.mu/portal/goc/mof/indomauritiustaxavoidanceconvention.pdf |publisher=Government of Mauritius |accessdate=13 July 2012 |archive-url=https://web.archive.org/web/20121114091305/http://www.gov.mu/portal/goc/mof/indomauritiustaxavoidanceconvention.pdf |archive-date=14 November 2012 |url-status=dead }}</ref><ref name="WallStreet">{{cite news|url=https://blogs.wsj.com/indiarealtime/2012/07/06/mauritius-gives-terms-not-islands-for-tax-treaty/|title=Mauritius Gives Terms (Not Islands) for Tax Treaty|work=The Wall Street Journal|accessdate=11 July 2012}}</ref>

The DTAC has helped Mauritius in developing its [[financial services]] industry while India has benefitted through FDI and job creation.

== Indian press ==

===Suspicion===
According to various [[Indian press]], the DTAA are being misused by investors to avoid paying taxes by routing investments through various countries which has tax treaty with India, in particular Mauritius and [[Singapore]], which account for 48% of FDI inflow to India.<ref>{{cite news|url=http://forbesindia.com/article/breakpoint/singapore-indias-latest-roundtrip-destination/5722/1|title=Singapore: India's latest 'round-trip' destination | work =Forbes India|accessdate=11 July 2012}}</ref>

==See also==
* [[India–Mauritius relations]]
* [[Double Taxation Avoidance Agreement]]
* [[General Anti-Avoidance Rule]]

==References==
{{reflist}}

==External links==
* [https://web.archive.org/web/20130316232629/http://mra.gov.mu/index.php/taxation/double-taxation-agreements Tax treaties of Mauritius]

{{DEFAULTSORT:Mauritius Route}}
[[Category:Tax avoidance]]
[[Category:India–Mauritius relations]]
[[Category:Taxation in India]]

Mauritius route - Revision history

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