Employee Secondment Reimbursements Taxable as FTS as’Make Available’ Test Was Satisfied: Delhi HC

CIT Vs Ernst And Young U.S. LLP (Delhi High Court) The Delhi High Court, in CIT Vs Ernst And Young U.S. LLP, held that reimbursements made by Indian EY entities to the US entity for seconded employees constituted Fee for Technical Services (FTS) under Article 12 of the India–USA DTAA, as the secondment arrangement satisfied the “make available” test by transferring technical knowledge and skills enabling Indian employees to perform the work independently. The Court also held that the foreign entity remained the real employer because it retained the power to terminate the employee...