Case Law Analysis
|Income Tax Appellate Tribunal
India-Japan DTAA | Reimbursement of Seconded Employee Salaries on Cost-to-Cost Basis Not FTS When Indian Entity Is Real Employer : ITAT Delhi
ITAT Delhi rules that reimbursement of salary costs for seconded employees-where the Indian entity is the real employer-does not constitute Fee for Technical Services (FTS) under the India-Japan DTAA, even without markup. The decision clarifies the tax treatment of cross-border secondment arrangements, impacting multinational corporations and tax compliance strategies.