Indian companies with overseas staff on deputation get GST notices

In recent weeks, Indian companies have been receiving GST demand notices due to the deputation of overseas staff to India. This follows a Supreme Court judgment stating that the reimbursement of salaries to overseas entities for "seconded employees" will be subject to service tax. Companies are now examining their cases to determine the best approach, as the period of limitation for assessment of cases for the financial year 2017-18 has ended. It is common for employees to be deputed from overseas to Indian subsidiaries, and their salaries are reimbursed by the Indian company to the overseas entity.

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