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11. [2026] 186 taxmann.com 18 (Mumbai - Trib.)
Goldman Sachs International vs ACIT (IT)
A.Y.: 2023-24 Dated: 30.03.2026
Article 13 of India-UK DTAA – Reimbursement of salary costs paid to seconded employees on a cost-to-cost basis cannot constitute fees for technical services, and is, therefore, not taxable in India.
FACTS
The Assessee, a UK tax resident, seconded a few employees to group companies in India. It also rendered financial services to group companies. As per the terms of the secondment, a part of the salary payable to the seconded employees was paid by the Assessee in the home country and was reimbursed by the Indian entities on a cost-to-cost basis.
The AO assessed the salary reimbursement received by the Assessee from Indian entities as fees for technical services (‘FTS’) under the Act and the DTAA. The Ld. DRP upheld the draft assessment order.
Aggrieved by the final order, the Assessee preferred an appeal before the ITAT.
HELD
The ITAT relied on the following aspects considered by the coordinate
