Secondment contract as ‘services’: Supreme Court held under Indian taxation regime
– Neha Sinha, Assitant Legal Advisor | neha.sinha@vinodkothari.com
Background
Secondment of employees have become increasingly popular amongst corporate entities which enter into secondment arrangements to leverage the expert knowledge and specific skill sets. The seconded employees work on a deputation basis in the seconded companies they are seconded to which require their technical expertise on certain matters. Since the seconded employee works for the seconded company during the secondment period, a pertinent question arises on whether the seconded employee becomes an employee of the seconded company. If yes, then what are the likely implications in the context of service tax.
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