It soon may be raining foreign postings for some lucky income tax officers. The Central Board of Direct Taxes (CBDT) is planning to post its officials to countries with which India has Double Taxation Avoidance Agreements (DTAA). For star-ters, it will post one official each in Mauritius and Singapore.

The officials will be a part of the trade division of the Indian missions in both the countries. A CBDT official told FE, The officials will as facilitators to trade and investment negotiations of companies located in these countries with India.
 
At present, there are no tax officials posted in the trade divisions. Given Indias booming economy and interest from foreign investors, the revenue department hopes the move will help increase foreign trade and investment in the country.

Most investors interested in India have questions relating to direct taxes, especially corporate tax, export-import policy and labour laws, which the trade division is unable to clarify properly, the official said. The I-T officials will help answer all tax related queries.

Not So Taxing
The CBDT is planning to post officials to countries with which India has Double Taxation Avoidance Agreements
The officials will be a part of the trade division of the Indian missions in both countries
The I-T officials will help answer all tax related queries
 
They will also coordinate DTAA related work, he added. If the move works well, the CBDT will post officers in other countries with which India has such pacts, the official said.

India has about 71 comprehensive DTAAs and another 15 limited agreements with other countries. Such agreements divide jurisdiction of the two signatories so that a particular income is taxed in one country only or,if taxed in both countries, suitable relief is provided in one country.