Income-tax Overseas Units (ITOUs) manned by tax officers at the level of First Secretary have been established in Mauritius and Singapore in May/June, 2010. Further, posting orders in respect of officers to be posted to newly created ITOUs in Indian missions at Cyprus, France, Germany, Japan, Netherlands, UAE, UK and USA have been issued. The relieving of these 8 officers to join their respective ITOU is pending for finalisation of terms & conditions of their posting by Ministry of External Affairs.
The Officers posted in ITOUs are mainly assigned functions relating to Double Taxation Avoidance Agreement (DTAA) including Exchange of Information on tax matters. The DTAAs stimulate the flow of capital, goods and services and technology, and facilitate trade and investment between India and treaty partner country.
Inter-departmental consultations are going on to examine the need for more such units in other countries.
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