BusinessPhoto: Business StandardIndia Tightens Mauritius Tax Treaty with Principal Purpose Test
India's Central Board of Direct Taxes (CBDT) has amended the tax treaty with Mauritius, effective August 10, 2026. The update allows Indian tax authorities to deny treaty benefits if obtaining tax advantages is a principal purpose of a transaction, unless consistent with the treaty's objectives. This aims to prevent misuse of Mauritius entities for tax benefits, aligning the treaty with international standards through a principal purpose test (PPT).
Business Standard·



