The trend of outsourcing preparation related to earnings tax obligations is believed, Returns overseas to have, Particularly to india commenced in the late 90 s. A relatively nascent segment, Tax return offshoring has witnessed significant activity over the last few years with an increase in the quantity of accountants and organizations outsourcing tax preparation with a view to minimizing operating costs and maximizing efficiency. Though a large proportion of the work is associated with data entry on tax forms, Specific characteristics of the offshore taxation process are more knowledge intensive. Taxation services may involve auditing and substantive analysis such as examination of interpretation of, Balance sheets items on the revenue and and computation, Loss statements requiring insight, Of taxability into the local tax laws, Amendments and pending legislations.