The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

by Seva Lamberdar Sat Oct 18, 2014 8:57 am

Suppose the Govt. (its ministers and officials etc.) negotiate a deal on behalf of India to buy equipment and services from a foreign country or company and later some or all of those engaged in deal making get rewarded in monetary or other kinds of payments by the foreign company or country, then all those rewards / payments should be made public and taxed in India if necessary.

In addition, it should be made sure that the overseas payments considered as commissions for work done by the Indians for the foreign companies did not give rise to the conflict of interest. For example, the agent for India (e.g. the minister or other Indian official) negotiating the initial deal or making purchases for goods etc. later on behalf of India did not also act as if he was the agent of the foreign company / country (paying him / her the commission). If the person wanted a commission / payment from a foreign company or country for making the deal with it, he should have refused beforehand to be the negotiator and representative of India.

by Seva Lamberdar Mon Oct 20, 2014 9:32 am

In any case, the gratuity (commission, kickback etc.) offered to India’s representatives (while drawing the salary from India in that capacity) by foreign companies / countries before, during or after the deal (such as to make purchases for India and vote on international issues and selecting sport sites etc.), and even if such gratuity is taxed by a foreign Govt. (country) and has been deposited in a foreign bank, cannot be shielded under the DTAA from taxation and scrutiny in India, because the amount earned as such (as the overseas payment or commission) is primarily the result of the Indian representative carrying out duties for India and getting paid by India to fulfil that role (making / negotiating purchases for India or acting as India’s representative etc. on the international bodies / associations).

There is only one way for India’s official representative and delegates etc. to escape the scrutiny and taxation in India on such overseas gratuities / commissions, i.e. by refusing to accept them altogether when offered by the foreign sources (individuals, associations, companies, countries), and not by claiming the DTAA.

by Guest Mon Oct 20, 2014 9:43 am

good points! i have a breakfast meeting with modi tomorrow at 8 am. i will prevail upon him and make sure he passes an ordinance or bill to legislate this issue. don't forget to make charvaka include this post of yours in the such book he will be publishing soon or you may never get the credit for initiating the bill!

by Seva Lamberdar Mon Oct 20, 2014 12:29 pm

madrasi_idiot wrote:good points! i have a breakfast meeting with modi tomorrow at 8 am. i will prevail upon him and make sure he passes an ordinance or bill to legislate this issue. don't forget to make charvaka include this post of yours in the such book he will be publishing soon or you may never get the credit for initiating the bill!

Thanks M.I. We look forward to your response / post here after your breakfast meeting with Modi.

by Guest Mon Oct 20, 2014 12:44 pm

Seva Lamberdar wrote:
madrasi_idiot wrote:good points! i have a breakfast meeting with modi tomorrow at 8 am. i will prevail upon him and make sure he passes an ordinance or bill to legislate this issue. don't forget to make charvaka include this post of yours in the such book he will be publishing soon or you may never get the credit for initiating the bill!

Thanks M.I. We look forward to your response / post here after your breakfast meeting with Modi.

aaAaAAAAaaAah i will not be able to post the response because it will be confidential. i hope you understand.

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The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

Re: The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

Re: The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

Re: The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

Re: The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest

Re: The double taxation avoidance agreement (DTAA) cannot shield people engaged in double dipping and the conflict of interest