Service Tax on secondment of employees: Unsettling the settled!
In another landmark move, Supreme Court in case of CC,CE&ST v. Northern Operating Systems Private Limited, 2022-VIL-31-SC-ST, has upheld levy of service tax on employee secondment arrangement between Indian and foreign entity. This ruling, being exceptional, is likely to put multinational companies having similar transactions in disarray. Considering the persuasiveness of this ruling under different laws, taxpayers need to proactively review their secondment arrangements to analyse its impact and take an informed call for past and future. In this Article, our Associate Partner, Ms. Aasmee Mangla and Senior Associate, Ms. Simran Arora, have attempted to analyse aforesaid Supreme Court ruling, its impact and have suggested way-forward for taxpayers.
Please click on the below link to read the article titled “Service Tax on secondment of employees: Unsettling the settled!’’.
Our Associate Partner, Ms. Aasmee Mangla has also given her insights on this issue in a short video. Please click on the below link to watch the video.