India and Mauritius amend tax treaty to curb abuse
In short
India and Mauritius changed their tax treaty to stop abuse, and the new PPT test was introduced. Authorities will look more closely at the purpose and business substance of transactions before granting treaty relief.
This matters because some cross-border deals may now face stricter checks. The reporting does not explain which investors or transactions will be affected first.
What the reporting says
India and Mauritius amended their tax treaty to curb treaty abuse, with the PPT test introduced to assess claims for treaty relief. The available reporting says authorities will place greater emphasis on the purpose and commercial substance of transactions. The immediate effect is stricter scrutiny of treaty benefits, while the exact implementation details and affected structures were not stated.
Why it matters
India and Mauritius amended their tax treaty to curb treaty abuse and introduced a PPT test for treaty relief claims. The available reporting says authorities will focus more on the purpose and commercial substance of transactions. This affects cross-border investors and tax planning structures that rely on treaty benefits. The reporting does not state when the change takes effect or which arrangements will be reviewed first.