India And Singapore Treaty

The international arbitration tribunal at the Hague had ruled that the Indian government's imposition of a tax liability on Vodafone was in breach of the investment treaty agreement between India and the Netherlands

Mauritius and Singapore are among the top sources of foreign direct investments into India and also account for a big chunk of total inflows into the country's capital markets.

The redrawing of tax agreement between India and Mauritius in May this year to close a popular loophole, that allowed investors to skirt levies on capital gains made in India, has triggered a similar revision in pact with Singapore.

India and Singapore today decided to strengthen cooperation in countering threats of rising terrorism with Prime Minister Narendra Modi terming cross-border terrorism and increasing radicalisation as "grave challenges" that endanger the very fabric of the two societies.

After revising the tax treaty with Mauritius, the Centre will soon initiate the process of modifying tax agreements with Singapore and Cyprus and hopes to complete the process within the current fiscal year so that there is uniformity on capital gains tax with regard to investments.

Analysts warn the government is likely to expand its crackdown on tax treaties and make it harder for investors to shop around for new havens.

The international arbitration tribunal at the Hague had ruled that the Indian government's imposition of a tax liability on Vodafone was in breach of the investment treaty agreement between India and the Netherlands

Mauritius and Singapore are among the top sources of foreign direct investments into India and also account for a big chunk of total inflows into the country's capital markets.

The redrawing of tax agreement between India and Mauritius in May this year to close a popular loophole, that allowed investors to skirt levies on capital gains made in India, has triggered a similar revision in pact with Singapore.

India and Singapore today decided to strengthen cooperation in countering threats of rising terrorism with Prime Minister Narendra Modi terming cross-border terrorism and increasing radicalisation as "grave challenges" that endanger the very fabric of the two societies.

After revising the tax treaty with Mauritius, the Centre will soon initiate the process of modifying tax agreements with Singapore and Cyprus and hopes to complete the process within the current fiscal year so that there is uniformity on capital gains tax with regard to investments.

Analysts warn the government is likely to expand its crackdown on tax treaties and make it harder for investors to shop around for new havens.