International taxation

1. “A” Co – US Based Co.
2. “B” Co – India Based Co
3. “A” holds  54% Eq. Sh. in “B”
4. The Employee of the “A”  in US is also a non-executive director of “B”.
5. The Said Employee now Shifted to “B” Office – India, for 3 Years to grow the “A” Business, on the Payroll of the “A”
6. The Expenses such as house rent, Electricity Exp., Motor car exp, mobile exp., etc are paying by “B”, and “B” reimbursed all such exp. By “A”.

Question

1. What are the Tax Implication in hands of Employee and Co “B” ?
2. Is there we can make any Tax Planning ?