Walmart Salary Reimbursements to Seconded Employees Exempt from Additional TDS Under Triple Test Control Principle

HC ruled in favor of assessee regarding TDS deductions on salary reimbursements made to Walmart USA for seconded employees. The court rejected Revenue's argument about lack of documentation demonstrating services rendered and training purposes. The court applied the Triple Test (Direct Control, Supervision, Direction) from ABBEY BUSINESS precedent to establish employer-employee relationship. The arrangement was deemed valid despite lacking traditional employment indicators, acknowledging modern international business practices. The court accepted assessee's position that TDS was properly deducted from salaries before reimbursement to Walmart, noting this fact was undisputed by Revenue. The reimbursement payments were held to be legitimate salary transactions, not technical service fees requiring separate TDS treatment. .....

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