Salary Reimbursement Payments Not Fees for Technical Services

This case note canvasses the order of the Bombay High Court in Director of Income Tax (International Tax) v. Marks & Spencer Reliance India Pvt. Ltd that a payment made by an Indian company to a United Kingdom company as a reimbursement of salaries of employees seconded to the Indian company is not a payment of fees for technical services and, therefore, is not liable to withholding tax in India.