STARTUP LEGAL28 Sept 2026
EY takes cross-border employee tax battle to Supreme Court | Company Business News
EY has moved the Supreme Court against a Delhi High Court ruling from June 2026. The court said payments EY India made to its US arm for deputed staff were fees for technical services, not salary reimbursement. This affects multinationals and global capability centres sending employees to India. Review your secondment contracts and withholding tax positions carefully.
Key Statutory Highlights
- EY filed its Supreme Court appeal on 15 September, challenging the Delhi High Court's 18 June 2026 ruling on seconded employees.
- The High Court held that payments by EY's Indian entities to EY US were taxable as fees for technical services, not cost reimbursement.
- The dispute covers assessment years 2018-19 to 2022-23, and the case has not yet been assigned to a bench for hearing.
Actionable Advice for Taxpayers / Founders:If your group moves employees between overseas and Indian entities, review your secondment contracts and how those payments are described. Since calling a payment a salary reimbursement may not be enough where the overseas entity keeps employment links, consider checking your withholding tax and GST position with a tax advisor.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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