August 16, 2011 8:15 PM

printer

Govt adopts five-prong strategy to deal menace of black money: Pranab

The government today said there was unwillingness on the part of Mauritius to revise its double tax avoidance treaty with India. In a written reply in the Rajya Sabha, minister of state for Finance S S Palanimanickam, however, said, the two countries have now agreed to hold further talks on the issue. He, said, the government has proposed to review the India-Mauritius Double Taxation Avoidance Convention (DTAC).Around 42 per cent of FDI and about 40 per cent of FII fund flows into India are routed through the island nation. India has proposed to amend the DTAC with Mauritius to prevent abuse of the treaty and strengthen the mechanism for exchange of tax information.Mr. Palanimanickam informed the House that recently both countries agreed to convene the next meeting of the Joint Working Group, which comprises members from the Indian and Mauritius governments.The group was constituted in 2006 to put in place adequate safeguards to prevent misuse of the India-Mauritius DTAC. In reply to another question, Finance Minister Pranab Mukherjee in a written reply in the Rajya Sabha, said the government has adopted a five-prong strategy to deal with the menace of black money. He said, this would involve joining the global crusade against black money, creating an appropriate legislative framework,setting up institutions for dealing with illicit funds, developing systems for implementation and imparting skills to manpower for effective action.

Most Read
View All arrow-right

No posts found.