A secondment review should examine who employs the individual, directs day-to-day work, bears remuneration, evaluates performance and can end the arrangement. Coordinate employment, immigration, tax, GST and foreign-exchange analysis. The documents and actual conduct should support the intended allocation; a cost recharge alone does not determine the legal result.
The business situation
An overseas group company sends a specialist to the Indian GCC. The foreign entity continues payroll, the GCC directs daily work, and costs are recharged. HR calls it a transfer, finance calls it a service and the agreements do not reconcile those descriptions.
A GCC is an operating model, not a separate legal form. The Indian entity's responsibilities follow its contracts, functions, people, assets and regulated activities. Group ownership does not eliminate the need to document services, assign rights, control access and examine cross-border payments.
What needs examining
01. Map the employment and control relationship
Identify the employer, host, reporting line, duties, location and duration. Review appointment and secondment documents alongside actual authority over leave, appraisal and discipline. Preserve the individual's employment rights and the host's operational requirements. Avoid using labels to conceal an arrangement that operates differently in practice.
02. Obtain connected tax and regulatory conclusions
Assess the relevant direct-tax, withholding, GST, immigration, social-security and FEMA questions on the facts. Current law and precedent must be checked for the particular arrangement. Do not infer GST treatment solely from reimbursement language or assume that the foreign payroll entity always remains the sole relevant employer for every purpose.
03. Plan return, termination and confidentiality
Define how the arrangement ends, who bears costs and what happens if the underlying employment or project changes. Address inventions, confidential information, data access and conflicts between home and host policies. Coordinate the employee communication with both group entities. An exit should not leave access, reporting or benefit responsibilities unresolved.
Law, contract and recommended practice
Company law, FEMA, direct and indirect tax, employment, intellectual-property and data-protection rules may apply to the GCC's actual functions. Foreign group policies are not a substitute for an India-specific legal assessment. Sector restrictions can apply even to activities described as support services.
Connect the control to the evidence
Use this table to scope the review. The legal basis and the practical control are identified separately.
| Obligation or objective | Practical control | Evidence to retain |
|---|---|---|
| Employment-law assessment Reflect the real employment and control position | Role and authority review | Employment and secondment record |
| Tax and regulatory assessment Determine applicable treatment from the facts | Connected advisor analysis | Tax, immigration and payment evidence |
| Contractual control Allocate duties throughout the assignment | Host, home and employee arrangements | Signed terms and assignment changes |
Records to prepare
Bring the complete, current record to the review. Preserve earlier versions where a change or disputed event makes them relevant.
Common questions
Does reimbursement mean the arrangement cannot be a taxable service?
No. The actual arrangement, applicable law and precedent require examination. The invoice label or absence of a markup is not a complete legal test.
Can the host simply apply every foreign employment policy?
Check Indian mandatory requirements and any conflict with the employee's governing arrangements. Home and host policies need an express, lawful interaction.
Prepare one factual account of control, employment and payment before the separate legal and tax analyses. Inconsistent descriptions are an avoidable source of risk.
Legislation & official resources
These references identify the governing frameworks. Confirm the current text, relevant amendments and applicable judicial position for the matter.
- Master Direction — Foreign Investment in IndiaReserve Bank of India · Official direction, displayed as updated to 15 June 2026 when reviewed. Read with the NDI Rules and applicable sector policy.
- Companies Act, 2013 — official legislative portalIndia Code · Government of India · Locate the current Act and applicable rules on India Code. Company category, exemptions and amendments matter.
- Digital Personal Data Protection frameworkMinistry of Electronics and Information Technology · Official framework resource. Apply the relevant Act, Rules and commencement notifications together.
This note is general information. The scenario is hypothetical and does not describe a client matter. The legal result depends on the facts, documents, jurisdiction and operative law. No individual lawyer review is represented by the preparation date.
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