{"url":"https://lrlabs.ai/t/secondment_fis_conflict","engine":"deterministic","llm_in_path":false,"id":"secondment_fis_conflict","question":"Are cost-to-cost secondment reimbursements to a foreign group entity taxable as FTS/FIS?","answer":"Contested — and now leaning revenue-ward. CIT v. Ernst & Young U.S. LLP (Delhi HC, 18 Jun 2026) held that cost-to-cost secondment recharges ARE fees for included services under India–US Art 12(4)(b): the make-available test was met where transmitted knowledge could be applied independently, the foreign entity remained the real employer (termination power, social security, return obligation), and the 'salary reimbursement' label was not determinative; Centrica (2014, SLP dismissed) was found analogous. The judgment did NOT engage the taxpayer-favourable Marks & Spencer Reliance / Flipkart Internet / Abbey line, whose status is uncertain. The engine carries this as a CONFLICT, not settled law. Separate exposures: service PE by secondment (Art 5(2)(l), Morgan Stanley), and the GST reverse-charge leg (Northern Operating Systems, read down by CBIC Instruction 05/2023-GST).","pinpoint":"Article 12(4)(b) India–US; CIT v. Ernst & Young U.S. LLP (Del HC, 18 Jun 2026)","confidence":"contested","as_at":"14 Aug 2026","quote":"make available technical knowledge, experience, skill, know-how, or processes","quote_string_verified":true,"quote_source":"rule:WHT.SECONDMENT-CONFLICT.INUS"}