Tax Street - December 2024

We are pleased to present the latest edition of Tax Street – our newsletter that covers all the key developments and updates in the realm of taxation in India and across the globe for the month of December 2024.

Focus Point

Secondment of employees – Ongoing debate on taxability

In a secondment arrangement, an employee of an overseas company is deputed for a specified period to an Indian company, where he works for the Indian company. Such arrangements are generally entered between group companies and the main purpose is to utilize the personnel talent available in any other company in order to set up, expand, and grow the Indian businesses. During the period of secondment, the employee works on the projects of the Indian company and the duties and responsibilities of the seconded employees are generally defined by the Indian company. As the services are provided by the employees to an Indian Company, the salary earned by the employee is taxed in India and Indian host employer remits the withholding tax on such salary as well.

From the Judiciary

Direct Tax: Whether foreign tax credit can be denied on the grounds of belated filing of requisite Form-67?

Indirect Tax: Madras HC: GST notices & orders should be served in-person/post/e-mail before uploading on portal.

Transfer Pricing: Deletes TP-adjustment qua interest on overdue receivables, considers assessee's debt-free status.

Tax Talk

Indian Developments

• No deduction in cases payment received by credit guarantee fund trust for Micro and Small Enterprises
• CBIC enables self-initiated payment facility at ICEGATE, replacing TR-6 Challan mode
• Import Management System for restricted IT Hardware: 2025 guidelines

Global Developments

• International tax reform: Release of new tools for the implementation of Amount B relating to the simplification of transfer pricing rules 2024
• New excise duty on liquids for e-cigarettes and other tobaccorelated products, from 1 April 2025
• International Compliance Assurance Programme (ICAP) – Forum on Tax Administration by OECD

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