Mauritius investors to be taxed from Apr 2017

"Grandfathering of investments  till 31 March 2017 provides some breather  to the existing investors and the fund houses. The reduced tax rate with 50% of the domestic rate of tax in India,  during the transition period of two years from April 2017 to March 2019 is a bit a show stopper unlike the India- Singapore treaty since as per the India-Mauritius protocol fulfilment of Limitation of Benefit will only entitle the investors to a 50% reduction of tax rates."

Manoj Purohit
Director, Grant Thornton Advisory Private Limited

This article appeared in Business Standard on 11th May, 2016