Expatriates in Hyderabad: GCC Secondments, FRRO Registration and Tax

Hyderabad hosts a large and growing number of global capability centres (GCCs) and multinational offices, which bring in foreign leaders and specialists on secondment. Both the employee and the Indian entity have obligations.

Immigration and Registration

Foreign nationals need the right visa for their work, usually an employment visa. Those staying beyond the period set by the rules must register with the Foreigners Regional Registration Office online through the e-FRRO system within the time allowed after arrival. India's immigration framework was consolidated under the Immigration and Foreigners Act, 2025, so check the current requirements.

Secondment Structures

A common model keeps the employee on the home payroll while the Indian GCC reimburses the cost. This raises issues:

• TDS: the Indian entity usually needs to deduct tax on the salary for Indian work, even if paid abroad.
• Withholding on reimbursements: payments to the foreign company may be treated as fees for services if not structured carefully.
• Permanent establishment: the foreign company may create a taxable presence in India through the secondee.
• GST: import of manpower services may attract GST under reverse charge.

Provident Fund

Secondees working for the Indian entity are generally international workers for PF purposes unless covered by a social security agreement certificate. Check the home country's agreement with India.

Employee Tax

The expatriate files an Indian return for each year of the assignment, claiming treaty relief and foreign tax credits as available, and coordinates with their home-country return.

Local Practicalities

Housing provided by the employer is valued as a perquisite; Hyderabad falls in the highest population category for this. Telangana Professional Tax applies to salaries paid through Indian payroll.

Getting Help

Think Filing supports Hyderabad GCCs and their expatriate employees with tax, payroll and secondment structuring.