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GST applicability for Reimbursement of Salary(Pure Agent) - on behalf of Indian Company, Goods and Services Tax - GST

Issue Id: - 115978
Dated: 5-2-2020
By:- Ojas Shah
GST applicability for Reimbursement of Salary(Pure Agent) - on behalf of Indian Company

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Dear Sir/Madam,

Kindly let me know about the GST applicability for Reimbursement of Salary By a Company A on behalf of Indian Company B.

Where the company A making payment does not provide any other service/supplies to the company B other than the reimbursement of Salary.

Thank You !!

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Showing Replies 1 to 4 of 4 Records

1 Dated: 5-2-2020
By:- KASTURI SETHI

The following decision may help you :-

2019 (20) G.S.T.L. 471 (A.A.R. - GST) = 2018 (12) TMI 893 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA IN RE : DRS MARINE SERVICES PVT. LTD.


2 Dated: 5-2-2020
By:- Ojas Shah

Dear Sir,

Thank You for your reply !!!

But here the question is that both the company are Indian Domestic Company also the neither of the company is Recruitment Agency and nor any of the services is provided between the party. It is mere sister concern.


3 Dated: 6-2-2020
By:- KASTURI SETHI

You have not gone deeply into this decision. Your issue is not fully covered by this decision. The ratio of the judgement is applicable to you. You must know the difference between Reimbursement and Disbursement. Moreover, every kind of reimbursement is not taxable. Reimbursement is not service. It is not consideration. Reimbursement takes the form of 'consideration' only when reimbursement is received against taxable supply . Where is supply in your case ? In my view, in this case GST is not applicable.


4 Dated: 6-2-2020
By:- Ojas Shah

Thank You Sir.

I was confused as there was case about salary paid on behalf of foreign entity.

Now got clarified.


1

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