The corporate had challenged the December 23, 2023 tax demand discover from the GST authorities, which had thought-about your complete wage quantity paid to seconded staff as taxable. Secondment, a typical observe amongst international firms, is a brief association during which an worker transitions from one function to a different, sometimes inside the identical group of firms, inside or exterior the nation for a specified period. “Since a prima facie case is made out and several other excessive courts granted interim aid and are additionally inspecting whether or not such an association would qualify as a taxable provide, there shall be an interim keep of additional proceedings pursuant to the impugned order till the matter is heard subsequent,” the single-judge bench of Justice Senthilkumar Ramamoorthy mentioned in an order final week.
The court docket will hear the case on April 8. Nonetheless, the GST authorities mentioned that within the secondment association, the corporate is deemed because the recipient of the service, and the providers offered by the expatriate can be thought-about as a “provide of manpower” beneath GST legal guidelines.
