Visa, employment and tax legal for intra-company transfers into India.
Moving an employee from a foreign group company into an Indian entity, whether a secondment, a deputation, or a permanent transfer, triggers immigration, employment, tax, and social-security questions that must be answered together. The employment visa and its conditions, the question of who the employer is during the transfer, the provident-fund and totalisation position, and the tax treatment of the cross-charge all interact, and the Supreme Court decision in Northern Operating Systems changed the landscape by holding that a typical secondment can be a taxable supply of manpower.
That decision means the old assumption, that a cost-reimbursement secondment is tax-neutral, is no longer safe, and the structure has to be designed with the indirect-tax and withholding consequences in mind. We structure the transfer to fit the visa framework, allocate the employment relationship clearly, manage the secondment-tax exposure flowing from Northern Operating Systems, and apply the international-worker and totalisation rules so the move is compliant on every axis.
Choosing between secondment, deputation, dual employment, and permanent transfer based on tax, visa, and control considerations.
Structuring the secondment and the cross-charge in light of Northern Operating Systems so the manpower-supply characterisation and its tax are anticipated and managed.
Aligning the transfer with the employment-visa conditions, registration, and the permitted scope of work in India.
Drafting the secondment or transfer agreement, the assignment letter, and the host-entity terms to fix the employer relationship clearly.
Applying the international-worker provident-fund rules and the totalisation agreement to the transferred employee.
Setting up the payroll, withholding, and cross-charge mechanics so the tax position matches the structure.
It can. In Northern Operating Systems the Supreme Court held that a secondment where the overseas entity retains the formal employment while the Indian entity uses the staff can be a supply of manpower and attract indirect tax. Secondments now have to be structured with this exposure in mind rather than assumed to be tax-neutral.
An employment visa with conditions appropriate to the role, salary threshold, and duration. The visa scope must match what the transferred employee actually does in India, and the compliance obligations continue through the assignment.
That depends on how the arrangement is structured and documented, and it has real tax and liability consequences. Clear documentation of the employment relationship, control, and the cross-charge is essential, particularly after Northern Operating Systems.
No. No engagement is treated as accepted until conflicts, scope and terms are confirmed in writing. An initial discussion is confidential and is used only to understand the matter and assess fit.
Share the key facts for a confidential preliminary assessment of your India matter.