Tax need to be withheld if payer has right to terminate ‘secondment’ & not ’employment’

AUTHORITY FOR ADVANCE RULINGS (INCOME TAX), NEW DELHI Target Corporation India (P.) Ltd., In re JUSTICE P.K. BALASUBRAMANYAN, CHAIRMAN A.A.R. NO. 851 OF 2009 AUGUST 16, 2012 RULING 1. The applicant is a company incorporated in India. It is a fully owned subsidiary of a company incorporated in the United States of America (U.S.A). It entered into an agreement with its U.S. principal on 10.6.2007, to be effective from 1.4.2006, for seconding certain of the employees of the principal to the applicant subject to certain terms and conditions. The applicant is to request its America...