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Secondment and TP Risk When: Employees Trigger Tax Trouble

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  “Secondments might look like simple HR moves — but tax authorities see more.” If a foreign employee works in India, is it really a secondment? Or is it a  cross-border service ? The answer could trigger: Arm’s length charges PE exposure Transfer pricing compliance In TP, even people can create risk. Here’s what you need to know. As businesses globalize, sending employees on secondment to group companies in other countries has become routine. But for Transfer Pricing (TP) professionals, this simple HR move can quickly turn into a tax compliance puzzle. The key question: Is the secondee truly an employee, or is this actually a cross-border service? Let’s unpack this grey area. What is a Secondment? In a secondment arrangement, an employee of one entity (say, the foreign parent) is temporarily assigned to another entity (like an Indian subsidiary). The secondee works under the host company’s direction but remains on the home company’s payroll. Want to know more check the link-...
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GST Portal Updates: Invoice Management, SPL 07 Appeal Order & Security Enhancements

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  Handling of Inadvertently Rejected records on IMS dated Jun 19th, 2025 To enable taxpayers to efficiently address invoice corrections or amendments with their suppliers through the GST portal, a new communication mechanism is being introduced. This initiative aims to assist taxpayers in reconciling their records with invoices issued by suppliers, thereby ensuring accurate Input Tax Credit (ITC) claims. However, taxpayers have encountered certain challenges in this process. To address these issues, the GSTN has implemented enhanced controls and greater transparency to effectively resolve the queries and concerns raised by taxpayers: Question 1: How can a recipient avail of ITC of wrongly rejected Invoices / Debit notes / ECO-Documents in IMS, as the corresponding GSTR-3B of the same tax period was also filed by the recipient? Answer: In such cases recipient can request the corresponding supplier to report the same record (without any change) in the same return period’s GSTR-1...
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GST Update: Major Changes in GST Portal

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 In line with the  Finance Act, 2023  and recent advisories issued by  GSTN/CBIC , the following major changes will come into force from the  July 2025 tax period  (i.e., returns due in  August 2025 ): GSTR-3B to Become Non-Editable Starting July 2025,  GSTR-3B will be fully auto-populated and non-editable . Taxpayers will  no longer  be permitted to manually alter tax liabilities or input figures. Any corrections to outward supplies must be made through  GSTR-1A , prior to filing GSTR-3B. Once GSTR-3B is submitted,  no further changes will be allowed  under any circumstances. This move is aimed at  ensuring strict reconciliation  between GSTR-1 and GSTR-3B data, thereby enhancing transparency and reducing discrepancies. 3-Year Time Limit for Filing Returns Effective  July 1, 2025 , the GST portal will  restrict the filing of returns that are more than 3 years past their original due da...
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Tax Planning Meets Green Investment: IREDA Bonds Under Section 54EC

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  What is IREDA? Indian Renewable Energy Development Agency Limited (IREDA) is a ‘Navratna’ Government of India Enterprise under the administrative control of the Ministry of New and Renewable Energy (MNRE). IREDA is based in New Delhi, operating nationwide. Its mission is to pioneer financing for renewable energy and energy efficiency projects, under its motto, “ENERGY FOR EVER”. It’s the backbone of green financing in India, enabling affordable funding for clean-energy projects across the country. What is Section 54EC of the Income Tax Act, 1961? The Section offers capital gains tax exemption when long-term gains from the sale of land or building are reinvested in notified bonds within 6 months of the sale. You may invest your long-term capital gains into specified bonds issued by: REC (Rural Electrification Corporation) PFC (Power Finance Corporation) IRFC (Indian Railways Finance Corporation) NHAI (National Highways Authority of India) Additionally, new issuers can be Governmen...
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Understanding the Competition (Amendment) Act, 2023

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 The Competition (Amendment) Act, 2023 marks a significant milestone in the evolution of India’s competition law framework. Enacted to address the challenges of a rapidly transforming market, especially in the digital economy, the amendment seeks to enhance regulatory efficiency, promote fair competition and align domestic practices with global standards. From introducing a deal value threshold for mergers and acquisitions to empowering the Competition Commission of India (CCI) with stronger investigative tools, the Act aims to streamline enforcement, close legal loopholes and ensure timely resolution of anti-competitive practices.  Driving Market Fairness and Efficiency: Objectives of the 2023 Competition Law Amendments Significant Growth of Indian Markets and Evolving Business Models Over the past decade, India has witnessed rapid economic expansion, digital transformation and a surge in startup activity. Traditional business models have evolved dramatically, w...
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In a recent SEBI’s interpretative letter dated 03.04.2025 addressed to DCB Bank Ltd. The SEBI has provided crucial clarity on the designation a hierarchical placement of Compliance Officer in Listed Companies under Reg 6 (1) of SEBI(LODR), Regulation, 2015. Background DCB bank approached SEBI through a formal request dated 09.01.2025, seeking informal guidelines on whether its current compliance officer, Ms. Rubi Chaturvedi who holds a position five level below to Board of Directors and report to the MD & CEO- meets the revised criteria under amended LODR. SEBI Interpretation SEBI clarified that under the amended proviso to Regulation 6 (1), the Compliance Officer must be: Positioned One level below the Board of Directors i.e. directly below the MD or Whole Time Director. The Positioned is necessary to ensure greater without and access to decision making at the board level, enabling the Compliance Officer to effectively discharge their regulatory and governance responsibilities. Ke...
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India’s Bureau of Indian Standards (BIS): Key Updates and Regulatory Developments – 2025

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Introduction to BIS Certification in India As India strengthens its regulatory framework to prioritize product safety, quality and consumer protection, the Bureau of Indian Standards (BIS) plays a central role in shaping market access rules, particularly for imports. A key development is the forthcoming Omnibus Technical Regulation, effective September 1, 2026, which significantly expands the range of products requiring mandatory BIS certification. This regulation is part of a broader government strategy to align domestic practices with global standards, enhance industrial safety and ensure consumer confidence in both imported and locally manufactured goods. BIS operates under the Ministry of Consumer Affairs, Food and Public Distribution and serves as India’s national standards body. Under the BIS Act of 2016, all products manufactured, sold, distributed or imported into India must conform to specific safety and quality standards. Non-compliance can lead to legal penalties and import ...
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