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Synopsis Economic liberalization in India started seriously fifteen years back has covered a wide area touching upon the different fields of international trade, exchange control, monetary and industrial policies, trade and fiscal policies, economic and cultural relations aimed at accelerating the growth in all spheres with a view to bringing about globalization of the India economy. The liberal and broad based economic and commercial relationship between India and various foreign countries in recent years has led to more collaboration and joint ventures at various levels in the public and private sectors to keep pace with the ever changing international advancement in trade, commerce, science and technology. The inflow of multinationals to set up business ventures in India coupled with the funds from Non-residents coming for short-term and long-term investments in India have helped to achieve a sound and stable economy that India has come to be recognized internationally. The political uncertainties due to changes in the Governments at the central and state levels have not adversely affected the growth of international trade and commerce between India and others. The Government of India has entered into numerous tax treaties as well trade agreements with various foreign countries to provide stability and certainty to the tax laws and commercial relationship between the parties in India and abroad. The large number of judicial pronouncements including advance rulings in the recent years under the tax laws, both direct and indirect, has added to the confidence of Non-residents being inspired with the Indian fiscal and judicial systems. The enormous wealth of judicial decisions from the Supreme Court as well as the High Courts and the Tribunals in deciding numerous tax disputes would also help to remove the uncertainties and ambiguities in the tax system and administration. The tax treaties have helped both the collaborators from abroad and the Indian enterprises in the private and public sectors to know precisely the nature, extent and scope of the tax liability as also the country in which tax is payable. Tax laws being complicated and ever changing, it is  essential to have a book which provides an authoritative and analytical commentary on the tax implication which are explained in various chapters lucidly. Tax implications of foreign collaborations in relation to the foreign collaborators, their technicians and associates as well as the tax treatment of the payment to collaborators and their technicians and executives, effect of the special provisions of tax treaties and a host of allied matters of direct and indirect tax laws have been elaborately dealt with. The statutory amendments upto and inclusive of Finance Act, 2006 and the rulings of courts and tribunals reported upto 01.11.2006 have been taken into account to provide a unique and authoritative commentary for the guidance of taxpayers, tax authorities, collaborators and their counsels as also the judicial and appellate authorities besides being and indispensable guide and research work for all concerned.