EY to appeal Delhi HC tax ruling to Supreme Court
Ernst & Young (EY) is heading to the Supreme Court after the Delhi High Court ruled that payments from EY India to its US counterpart for employees on temporary assignments should be taxed as "fees for technical services," not just simple reimbursements.
EY says these were just salary repayments, but the High Court saw it differently.
Multinationals in India may withhold taxes
This case could shake things up for multinationals in India, especially tech, consulting, and global capability centers that frequently bring employees from overseas offices to work on specific projects in India.
If the Supreme Court agrees with the High Court, companies might have to start deducting taxes on these payments.
The case is now waiting for a bench assignment, and global firms are watching closely since it could change how cross-border employee transfers are taxed in India.