AAR on obligation of an Indian company to deduct tax at source for payments made to a Korean company under ‘Secondment Agreement’

8.5 The crucial question to be asked and answered is whether the applicant has paid any fee to HMFICL for the service of deputing its own employee having technical knowledge to work with the applicant for a specified period? Whether the part reimbursement of salary of secondee by the applicant shall be construed as consideration for rendering the service of the kind covered by FTS clause? Does it partake the character of income? In our considered view, the answer must be in the negative and the amount paid by the applicant cannot be said to be in the nature of a consideration for offering the ...