Navigating the Complexities of Outward Secondment Arrangements in India: Tax and GST Implications

CA. Shivam Agrawal | Last updated: 20 March 2025

Save Share

Quick Summary

This article delves into the tax and Goods and Services Tax (GST) implications for Indian businesses engaging in outward secondment arrangements, where employees are temporarily transferred overseas. It explores key considerations such as the establishment of a Service Permanent Establishment (PE) and the applicability of Fees for Technical Services (FTS), highlighting how Double Taxation Avoidance Agreements (DTAAs) influence these aspects. The piece also examines four distinct scenarios, offering guidance on structuring secondment agreements to optimise tax benefits and ensure compliance with Indian regulations.

As Indian businesses continue to expand their global footprint, outward secondment arrangements have become increasingly common. These arrangements involve the temporary transfer of employees from an Indian entity to an overseas entity, often raising complex questions around tax and GST implications

Daily Limit Reached

You have reached your daily limit of 2 Free Articles

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Articles Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

BEST VALUE

2 YEAR PLAN

3,499

(Excl. of GST ₹629)

1 YEAR PLAN

1,999

(Excl. of GST ₹359)

3 MONTHS PLAN

999

(Excl of GST ₹179)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

746 Views Comment Share GST Report

About the Author

CA. Shivam Agrawal

Chartered Accountant

Shivam Agrawal is a Chartered Accountant and AMU alumnus with a short but rich work experience in Indirect Taxation w.r.t. GST Implementation, GST Advisory Compliance management and filing of GST refunds. He is a keen learner actively involved in learning intricacies of Indirect tax and allied corporate laws includin ... Read more

View Articles

Comments :