Investors have other choices than Mauritius: March 1, 2013 – News n Analysis by Dr. Raj Baldev, Cosmo Theorist, on the remarks of Finance Minister P.Chidambaram on the issue of Investment why to prefer Mauritius, while there are 100 other countries where the investment comes from. What would you like to say?
The question, in fact, relates to Double Taxation Avoidance Agreements (DTAA), the majority of Indians consider Mauritius as a safe route of investment which Mr. Chidambaram refuted in his own style.
While clarifying the stand of the Govt. Mr. Chidambaram said in his interview to CNBC-TV18, that Mauritius should not be preferred as a route of investment.
He said that investment comes from over 100 countries so he gave his mind that Mauritius should not be preferred as a route for investment, I think this statement should have been avoided, it affects the bilateral relations.
He has indirectly given his mind that Indians should avoid investing in Mauritius.
While mending his own words, he said no doubt that Mauritius does give advantage to the investors today and if the advantage is taken by the real people, Govt. has no complaint.
His words to the effect that he gave in his interview:
” I don’t think Mauritius can or should be the preferred route for investment. There are other over 100 routes for investment but Mauritius does give a certain advantage to the investor today.”
“If the advantage is enjoyed by genuine Mauritius resident or businessmen, then we have no complaint,” he added.
The Finance Minister, however, said that participatory notes (P-notes) holders shall not be touched by General Anti Avoidance Rule (GAAR).
With reference of tax residency certificates (TRC) in Union Budget 2013, the Dalal Street was also confused. But he said that the Finance Ministry had to issue a clarification that there was no intent of questioning any tax residency certificate holders and so the TRCs will be accepted as evidence of residence.
So far the foreign investors are concerned, they are not at all happy, they are confused totally on the changing policies of the Govt. It is a minus point for the UPA Govt. despite whatever claim they may make of their high policies.
The foreign investors are in an uncertain state of mind, they feel there is no match what the Indian govt. says, what it intends to do and what it finally does?
