# India Tax refund to firm per onsite assignment



## grandkle (Feb 8, 2015)

Hi,

I was on an long term assignment abroad for couple of years on an Indian firm's payroll. 
My firm paid all my onsite expenses while on work deputation but my regular monthly payroll ran in India. My case got qualified for Dual Taxation (Tax equalization policy) and got my taxes waived of in India while taxes were filed for abroad expenses. 

Apparently my firm took a signed consent(not on stamp paper) that whatever refund we get from India IT dept is to be given back to the firm even though its tax refund on my paychecks.

Question: Is it possible that firm;s to make such a claim in first place? In worst case scenarios would this even be a case worth for litigation?

Please help answer my questions?
NOTE: i am no linger the that firm.


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## BBCWatcher (Dec 28, 2012)

I'm not sure I understand the question. However, as a general matter, if you are "tax equalized" then your employer (and their accountant) try to make sure you receive a particular after-tax income. As long as you have received that particular after-tax income result, and as long as they and you have followed the law (including tax laws), they've fully satisfied their obligations. Any tax refunds or additional tax payments are their benefit/responsibility. You don't get to "double dip" by enjoying tax refunds that would increase your after-tax income beyond what they promised. That's what tax equalization means: they take the "tax bet," not you. If they do better than expected from a tax point of view, then that's their benefit.


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## Bevdeforges (Nov 16, 2007)

Further to BBCWatcher's points, "tax equalization" is normally a company policy, not part of the various tax treaties themselves. I suspect you don't have a reason for litigation on the issue.
Cheers,
Bev


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