Ah! bliss: Capt. Vikas Gupta has it good with a tax-free NRI pay that he earns aboard a foreign liner

Nightmares of a big tax net closing in are not uncommon. They need no Freudian analysis. It's all rather straightforward. At last count, some 71 service industries had been wrapped up as taxable. Personal income tax, of course, has always been payable anyway; it's just that the tangle of exemptions may be in their last year if the Kelkar Committee report makes headway with the Finance Ministry. It's the international approach.

And therein lies a hint. Riddler-like, you can escape the net by questioning the assumptions. Why, for example, should you assume all jobs in your field of work to be taxable in the first place?

Some are not. The most prestigious of these are jobs at multilateral organisations such as the World Bank, International Monetary Fund (IMF) and the United Nations (UN) along with the 20-odd other agencies under its aegis. Indians working here need not pay income tax, in accordance with Section 19 of the Convention on the Privileges and Immunities of the Specialized Agencies of the United Nations, which was acceded to by the Government of India in 1949.

Tax Free Status

"The tax-free pay makes the job more attractive," admits A. Gupta, 54, WHO works with United Nations Population Fund (UNFPA) in Delhi. He started his career with the World Health Organisation (WHO), before moving to UNFPA, and then to the American Embassy in New Delhi. But the pay at the embassy was taxable, and he lost his job in a 1989 staff-cut. So he returned to his old job. "I feel very good to be here," he says.

But working at such an organisation doesn't mean you don't file your papers at all. "I still file my returns," says Sureka Suberwal, assistant resident representative at United Nations Development Program (UNDP), "though I don't pay any tax on the salary I earn." She moved to UNDP four years ago from the Delegation of European Union, where she worked for nine years, paying taxes.

But first things first. There are not many tax-free jobs around. The un, thankfully, throws up a few hundred vacancies every year within the country, a large fraction of them for professionals such as doctors, engineers, CAS, MBAs, economists, social scientists and so on.

The World Bank's local office in New Delhi employs some 179 locally-recruited Indian staff and 22 international staff, and is the organisation's largest outside Washington DC. Plus, there's a back-office in Chennai, with 185 local recruits. The outsourcing story seems to be happening at the highest levels. Overall, the World Bank employs professionals for a wide range of functions and specialisations. The salary scales are pegged to the local market; in 2003, the top grade ranged from Rs 18 lakh to Rs 37 lakh per annum, and the lowest from Rs 1,19,000 to Rs 2,21,000 per annum.

"In determining salaries in this way," says Nira Anand, Head, Human Resources (for India and Sri Lanka), World Bank, "account is taken of the fact that while World Bank salaries are paid tax-free, comparator salaries are taxed; thus the tax-free status of the Bank is more of a contribution by the Government of India to the running costs of the Bank than it is a perquisite for the staff concerned."

In contrast, the IMF runs an operation in India with just half a dozen-odd professional staff. "IMF has halved its strength in India since the country became a lender (as opposed to a borrower of funds) from last year," says an insider. The one job still up for grabs here is that of an economic researcher. For other opportunities, there's the WHO, employing about 300 people in India, not all medicine-related.

How to find the jobs? Surfing through the organisations' official websites is the best way. For instance, UNDP's Indian website announces that it "is now in the midst of a major recruiting campaign" for posts within India and beyond. Sample: if you are a university graduate in epidemiology or psychiatry or sociology with three years work experience, you could apply for a research associate's post based in New Delhi at the UN Office on Drugs and Crime. If you're an adventurous finance professional, you could go to Kabul as a counterpart chief financial officer to help work on the Afghan budget.

Other Ways

There are some other ways to get a tax-free job too. The merchant navy, for example. Join a foreign liner, such as Maersk, Baber Shipping Corp or Anglo-Eastern, and you could be considered a Non Resident Indian (NRI) for tax purposes. Vikas Gupta, 33, sails seven to eight months a year as a captain for a Greek liner, Dynacom Tanker Management Sevices, a crude oil tanker. The rest of the year, he stays at Ghaziabad, spending his monthly $5,000 income. "Sailing time in international waters entitles you to get paid in foreign currency," says Bhupinder S. Virk, 48, a chief engineer with an American liner.

Yet another way is to get lucky with an indirect un assignment, which would require your existing organisation to send you on, say, a un peacekeeping mission. India currently has peacekeepers in Congo and Eritrea, for example. It's good money. A squadron leader who was posted on such a mission to an African country bought a luxury sedan and a Rs 2.5 lakh-Calloway golf kit upon his return. "I have hidden this fact from my wife," he whispers, "Please don't reveal my identity."

A UN job is not just about the money, however. It's about values. Says Ena Singh, a public health specialist at UNFPA, "The tax-free pay does draw people to the job. But it's the nature of the work, the social and development issues that we work on that give us enormous job satisfaction."

SPOTLIGHT
Meera Prabhu

Learning curve: IBM India's Prabhu is helping bridge the digital divide

Google 'community relations', and the first to pop up is IBM's efforts at philanthropy. Surprised? Don't be, for it's not just computers but community relations that constitute Big Blue's commitment to India. "Giving back to the communities it operates in is one of the core values that shape IBM," explains Meera Prabhu, 40, Country Manager,

Marketing and Corporate Community Relations, IBM India. It's a job that calls for linking the company's expertise with community needs. On its part, IBM uses its tech prowess to address education for underprivileged children. It's about passion for management as much as dedication to the cause. Plus, the confidence of an innovative approach. "We know that we can make a difference," says Prabhu.

-Payal Sethi

COUNSELLING
Help, Tarun!

I am a 26-year-old telecom engineer working with a leading mobile service provider for the last five years. Of late, I have realised that while I am doing well in this job, my real interest lies in financial management. Therefore, I want to do an MBA in finance from a good B-school now, and later take up a related job. Will switching to an altogether different sector be a good idea, especially since I'm doing well in the present one? And will it be difficult for me to change back, if I wish to, at a later point in time? Please advice.

You are just 26, so it's still not too late for you make the switch. If you are really keen on a career in finance, an MBA would be a good idea as it would enhance your prospects in both the sectors. Besides, an MBA degree would also give you the option to stay on in telecom where you could take up a finance job. In case you wish to switch back to engineering later, you could. However, you might have to explain the reason for your decision to prospective employers then. Before you zero in on either function though, make sure you weigh the pros and cons of both.

I am a 25-year-old electronics and communication engineer working with an MNC for the last couple of years as project planner. Prior to this, I was working as a customer support associate in a BPO outfit. Though I was doing well there, I had decided to switch to project planning because the future of the BPO industry looked dismal back then. However, now I've started to regret my decision since not only is the BPO sector one of the fastest growing, my present company is going through a financial crisis, leaving little scope for growth. Since I enjoy working in a call centre, should I join one now?

You must remember that each industry goes through phases and it is not necessary that a sector that is in boom now will remain so forever. While job satisfaction and work environment are good reasons for contemplating a change, you would do well to consider other factors like future prospects, scope for growth and quality of experience as well. Also, you need to see whether the idea of working with a call centre for, say, the next five to seven years, appeals to you. If it does, go ahead and join one.

I am a 42-year-old manager working with a nationalised bank for the last 18 years. I hold an M.Com degree and have also completed the CAIIB. Now I want to do a CFA course from ICFAI, Hyderabad, because I feel it would add to my qualifications and raise my prospects in the industry as well. I want to know if this course would help me build an independent career as a consultant, or whether I should go in for an MBA in finance from a good B-school. Please advice.

While an MBA from a good B-school is certainly a good option provided you can take two years off from work, a CFA degree would come in more useful given your background. Also, while the MBA degree will open doors to jobs in private sector banks and financial institutions, the CFA course would help you in your consulting business, should you start one. However, you must remember that as a senior officer with a nationalised bank, you enjoy certain benefits like job security and old-age pension, which you will not get if you start your own consulting firm. Consider all the factors carefully before you decide on anything.

I am a 26-year-old army officer about to retire from the short service commission soon. I'm now looking for a suitable placement in the corporate world that would offer me adequate remuneration. I am an MBA in HR with a graduate degree in political science and pg diplomas in sales and marketing, and also automobile engineering. What kind of jobs and remuneration should I look forward to at the entry level, since I'm sure my experience in the Army will not come in very useful in the corporate sector?

It should not be difficult for you to find a job that relates to any of the degrees or diplomas that you hold. It is, in fact, upto you to find out which field of work interests you. The options you could look at are jobs in hr, sales and marketing in any industry. There are also jobs available in the automotive sector in manufacturing, vending and managing service centres. Given these choices though, you would do well to compromise a little on the expected pay package at the entry level, if you get an opportunity to work with a good company and in a function that you like.

Answers to your career concerns are contributed by Tarun Sheth (Senior Consultant) and Shilpa Sheth (Managing Partner, US practice) of HR firm, Shilputsi Consultants. Write to Help,Tarun! c/o Business Today, Videocon Tower, Fifth Floor, E-1, Jhandewalan Extn., New Delhi-110055.

Bartending 101
Bartending evolves. There's even a school for it now.

Trained bartenders: Perfect cocktails of talent and creativity

If your mothertongue's martini, and you count bloody Mary and 007 as pals, don't assume you'd make a terrific bartender. You might still have to go to a new kind of B-school (for bartending) before you get anywhere close to star status-being recommended by high-fliers on inter-continental flights.

"Bartending," says Shatbhi Basu, director of the Mumbai-based STIR Academy of Bartending, "is a strange mix of art, science and technique. While it can be a tough job to get the just-right blend to please your guest enough, the job allows you the flexibility of a creative process and a chance to interact with high-profile guests from diverse backgrounds."

The secret of success is to be much more than what you appear to be. STIR, on its part, runs courses ranging from drink chemistry and alcohol awareness to bar ethics and customer psychology. It's a finishing school of sorts, and hopes to turn out the sort of bartender you won't forget: someone unflappable, witty and observant, with a fine sense of humour and taste, who can play the subtle counsellor too. The pay starts slowly. About Rs 4,000 per month for a start, rising to Rs 15,000 on experience. The real game, though, is the tips-that have no limits.

-Ananya Roy

Clockwork Arranged
It's a nerve-frazzling job, but somebody's got to do it.

Logistics management: Learning the right moves

Logistics education? There's logic in it, as this Brownian-motion world gets more complicated. But an entire education? "Contrary to popular belief," says Pawan Jain, Chairman and MD, SafeExpress, "the truth is that logistics management involves much more than just shipping packets." There's fleet management that could involve taxing linear programming modules, apart from order fulfilment, logistics network design and more-enough to give you a headache even in a computer-girdled world.

What used to be a simple operations management course at B-schools is, thus, turning into a full specialisation. "Today's world is focused," explains Vijay Aggarwal, professor of operations management and decision sciences at MDI, Gurgaon, "so a specialisation has to be looked at in the total context-whether it's about getting business or making decisions about trade-offs between different options available." You could work with one of the many global logistical firms, but don't expect to cut yourself some slack on the job.

-Amanpreet Singh