Case Law Analysis
|Custom, Excise & Service Tax Tribunal
Direct Employment of Expatriates Exempts Service Tax on Salary Reimbursements | CESTAT Hyderabad Clarifies Reverse Charge Mechanism
CESTAT Hyderabad rules that salary reimbursements to foreign entities for expatriate employees directly employed by an Indian entity are not liable for service tax. The Tribunal held that the employer-employee relationship overrides secondment arrangements, negating the reverse charge mechanism under the Finance Act.