Supreme Court seeks tax department reply in EY US LLP case
In short
The Supreme Court sent a notice to the Income Tax Department in EY US LLP’s challenge to a Delhi High Court ruling. The case involves a Rs. 368 crore fees-for-technical-services dispute over the tax treatment of seconded employees.
This matters for EY US LLP and for tax treatment of secondment arrangements with Indian entities. The available reporting does not say when the case will be heard next or how the court will decide.
What the reporting says
The Supreme Court issued notice to the Income Tax Department after EY US LLP challenged the Delhi High Court ruling in a Rs. 368 crore fees-for-technical-services case. The available summary says the dispute concerns the taxability of the cost of secondment of employees to Indian entities as FTS. The reporting does not state the court’s next hearing date or any final outcome.
Why it matters
The Supreme Court has issued notice to the Income Tax Department in EY US LLP’s challenge to the Delhi High Court ruling in a Rs. 368 crore fees-for-technical-services dispute. The summary says the issue is whether the cost of secondment of employees to Indian entities should be treated as FTS. The notice keeps the case alive, but the next hearing date and any final ruling are not stated.