8 New ITOUs to be Operationalised in Next Fiscal
The Minister of State for Finance, Shri S.S. Palanimanickam, in written reply to a question raised in Lok Sabha today, said that the Government has taken steps to operationalise 8 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.