Direct Tax Verdicts July 2017

Foreword

The Indian Courts/Tribunals have pronounced several judgements on varied issues relating to Corporate and International Taxation in July. We are pleased to publish the first edition of 'Direct Tax Verdicts' where we have picked six judgements of significant importance and prepared a brief analysis on them¹.

Employee Secondment Taxation

Taxability of amount received towards reimbursement of salary costs of seconded employee²

Facts

• The taxpayer, a company incorporated in USA, was engaged in the business of manufacturing and marketing storage network infrastructure products.
• Pursuant to Secondment Agreement dated 15 February 2010, an Indian subsidiary (Ico) had engaged the services of an employee of the taxpayer.