Tax Update

C.C., C.E. & S.T. – BANGALORE (ADJUDICATION) v. NORTHERN OPERATING SYSTEMS PVT LTD

“In case of C.C.,C.E. & S.T. – BANGALORE (ADJUDICATION) v. NORTHERN OPERATING SYSTEMS PVT LTD., CIVIL APPEAL NO. 2289-2293 of 2021, the Hon’ble Supreme Court held that the secondment of employees with Indian entity by overseas group entity was liable to service tax for the pre-negative list as well as negative list regime of service tax.

It is also noted that the provisions of the tax deduction at source (TDS) under the Income Tax Act, were applicable in relation to the salary paid by the foreign employer. The above is an established principle which has been reiterated in the present judgement.”

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