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Tax implications of ‘employee secondment’ contracts : ITAT Bangalore
Case Law Details
- Case Name
- IDS Software Solutions Vs. ITO (ITAT Bangalore)
- Courts
- All ITAT, ITAT Bangalore
Where the assessee entered into a ‘secondment agreement’ with a US Company and obtained the services of an employee and the question arose whether the reimbursement by the assessee to the US Company of the salary paid by the US Company was chargeable to tax as “fees for technical services” HELD:
(i) Though the US Co was the employer in a legal sense but since the services of the employee had been seconded to the assessee and since the assessee was to reimburse the emoluments and it controlled the services of the employee, it was the assessee which for all practical purposes was the emp...
