Mauritius is still to agree to certain proposals to the revision of the bilateral tax treaty, Finance Minister Arun Jaitley said in December.

“India has made certain proposals for revision of DTAC (Double Taxation Avoidance Convention) to end round-tripping and other aspects. Mauritius is yet to agree to such revision,” Jaitley said in a written reply to the Rajya Sabha.

The Finance Minister said a joint working group had been set up towards the DTAC revision, while ten meetings of the group have taken place, with the last being in November.

Negotiations on amending the Indo-Mauritius tax treaty have been pending for long with India concerned that it is being misused to transfer unaccounted money and evade taxes. Uncertainties over its signing have adversely affected investment flows between the two countries.

Mauritius is one India’s major sources of foreign direct investments, with USD 4.85 billion of FDI coming in from there during 2013-14.