12 January 2016 India ruling confirms that service tax does not apply to secondment of employees A recent ruling has determined that salary income, received by an employee for services rendered to the Indian subsidiary of a foreign company, will not be subject to service tax if an employer-employee relationship is established with the Indian subsidiary. While this ruling clearly sets a favorable precedent, employers should evaluate the application of the ruling on a case to case basis, depending on the documentation and the change to the service tax legislation from July 1, 2012. A Tax Alert prepared by Ernst & Young's Human Capital Group, and attached below, provides additional details. Document ID: 2016-0065 |
