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2015 (12) TMI 420 - AAR - Service TaxForeign Employees on Deputation in India - Interpretation of term "service" - Salary payment of US Company's employee recruited - Section 65(44) - Held that:- The agreement is very clear to suggest that so long as Mr. Sloan is serving in India, he will be treated to be the employee of the applicant though his interests as the employee of NAC, US, insofar as the social security interests are concerned, will be taken care of by NAC, US. It is trite that he does not get the salary from NAC, US when he is offering services to NAC, India in that behalf, the benefits are mutually exclusive, at least so far as, they are concerned with the salary. The only obligation on NAC, US is regarding the social securities which are not reimbursed by NAC, India to NAC, US - merely because the social security of Mr. Sloan while he is in India is being taken care of by the NAC, US. The service of Mr. Sloan with NAC, India can not be viewed otherwise in view of the clear language of Section 65 (44) (b). - there shall be no liability to pay service tax on the salary and the allowances payable by the applicant to the employee in terms of the dual employment agreement and such salary will not be eligible to levy the service tax as per the provisions of the Finance Act. - Decided in favour of assessee.
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