Bilateral Relief: The Governments of two countries can enter into Double Taxation Avoidance Agreement (DTAA) to provide relief against such Double Taxation, worked out on the basis of mutual agreement between the two concerned sovereign states.  

Unilateral relief: The above procedure for granting relief will not be sufficient to meet all cases. No country will be in a position to arrive at such agreement with all the countries of the world for all time.  

Double Taxation Avoidance Agreement (DTAA): List of countries with which India has signed Double Taxation Avoidance Agreement:

·         DTAA Comprehensive Agreements - (With respect to taxes on income)

·         DTAA Limited Agreements – With respect to income of airlines/ merchant shipping

·         Limited Multilateral Agreement

·         DTAA Other Agreements/Double Taxation Relief Rules

·         Specified Associations Agreement

·         Tax Information Exchange Agreement (TIEA)

INDIRECT TAXATION

Central Sales Tax (CST): Central Sales tax is generally payable on the sale of all goods by a dealer in the course of inter-state trade or commerce or, outside a state or, in the course of import into or, export from India. 

Value Added Tax (VAT): VAT is a multi-stage tax on goods that is levied across various stages of production and supply with credit given for tax paid at each stage of Value addition. Introduction of state level VAT is the most significant tax reform measure at state level. The state level VAT has replaced the existing State Sales Tax.