CASE STUDY I - Designing a secondment policy for a leading software company.

An Indian company registered with the STPI and claiming tax benefits had employees seconded to its subsidiary in the US. The mandate was to design a policy that minimised the overall tax cost in India and US and maximised the tax cash flows in the hands of the employees.

SKP recommended a dual payroll and a net pay model in US which resulted in substantial tax savings in India and for the group as a whole. SKP’s advice was akin to that of an international legal counsel i.e. holistic advice keeping immigration, legal, Indian and the US tax, transfer pricing and regulatory / FEMA angles. The client was provided with a policy and also advised on internal controls and necessary documentation that needed to be maintained to justify the policy.