https://www.taxtmi.com/caselaws?id=783803 Reimbursements received from Indian group entities for salary paid to seconded employees were held not to constitute Fee for Technical Services under section 9(1)(vii) of the Income-tax Act or Article 12(4) of the India-Japan DTAA. The Tribunal treated the payments as salary reimbursements on a cost-to-cost basis, with no mark-up, and noted that the secondees worked under the control of the Indian entities. It also relied on the fact that tax had been deducted at source on the salary payments. On these facts, the reimbursement could not be recharacterised as consideration for technical services and was therefore outside the FTS charge under both the Act and the treaty. en-us Wed, 10 Dec 2025 00:00:00 +0530 Mon, 22 Jun 2026 17:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=783803 Reimbursements received from Indian group entities for salary paid to seconded employees were held not to constitute Fee for Technical Services under section 9(1)(vii) of the Income-tax Act or Article 12(4) of the India-Japan DTAA. The Tribunal treated the payments as salary reimbursements on a cost-to-cost basis, with no mark-up, and noted that the secondees worked under the control of the Indian entities. It also relied on the fact that tax had been deducted at source on the salary payments. On these facts, the reimbursement could not be recharacterised as consideration for technical services and was therefore outside the FTS charge under both the Act and the treaty. Case-Laws Income Tax Wed, 10 Dec 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=783803