India in talks with Mauritius on tax treaty issues

India is discussing a whole host of issues with Mauritius including ways and means of ensuring that a tax treaty with the island nation is not misused, Akhilesh Ranjan, a joint secretary in the tax department told reporters on Thursday.

Earlier, in October, Mauritius finance minister had told Reuters they were in talks to review a tax treaty that had made the island the biggest single source of foreign direct investment in India.

But the treaty`s terms have been a growing irritant to India, which says a chunk of the funds are not real foreign investment but Indians routing cash through the island to avoid Indian taxes.