GST applicability for Reimbursement of Salary(Pure Agent) - on behalf of Indian Company

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..... GST applicability for Reimbursement of Salary(Pure Agent) - on behalf of Indian Company
Query (Issue) Started By: - Ojas Shah Dated:- 5-2-2020 Last Reply Date:- 6-2-2020 Goods and Services Tax - GST
Got 4 Replies
GST
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 paym .....

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..... ent does not provide any other service/supplies to the company B other than the reimbursement of Salary. Thank You !! Reply By KASTURI SETHI: The Reply: 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. Reply By Ojas Shah: The Reply: Dear Sir, Thank You for your r .....

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..... eply !!! 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. Reply By KASTURI SETHI: The Reply: 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 .....

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..... 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. Reply By Ojas Shah: .....

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..... The Reply: Thank You Sir. I was confused as there was case about salary paid on behalf of foreign entity. Now got clarified.
Discussion Forum - Knowledge Sharing .....

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