WHILE answering a question in the Lok Sabha today, the Minister of
State for Finance, Mr S.S. Palanimanickam, said that the Government has taken
steps to operationalise eight new Income Tax Overseas Units (ITOUs) in France,
Germany, Netherlands, Cyprus, U.S.A, U.K., U.A.E. and Japan in the next
financial year.
Two
ITOUs have already been operationalised in Singapore & Mauritius in F.Y.
2010-2011. These Units are not engaged in tax collection process directly.
The
mandate of ITOUs is to assist Indian Competent authorities, under the Double
Taxation Avoidance Agreements (DTAAs)/ Tax Information Exchange Agreements
(TIEAs), in its various works as well as to provide clarity on Indian taxation
law in order to promote investment in India.
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