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Hitachi Power Europe GMBH – AAR

Project Office established in India as an extension of the Head Office in Germany for undertaking projects in India. Employees of Head Office working on deputation at Project Office.

Expat employees are employees of the employer i.e. the Head Office and since the Project Office is an extension of the Head Office, there is a relation of employer and employee between the Project Office and the expat employees.

The above AAR can be used as the basis for contenting that cross charge of salary cost is not required between branches, as employees are qua the legal entity and not qua each branch.

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