Credit card expenses by Indian subsidiary of MNC liable for GST
Credit card expenses made by employees of an Indian subsidiary for furtherance of business here would come under the purview of Goods and Service Tax (GST) with applicable 18 per cent rate.
By : migrator
Update: 2021-05-17 18:08 GMT
New Delhi
According to a recent ruling by Tamil Nadu Appellate Authority for Advance Ruling (AAAR), any expenses made by employees of an Indian subsidiary of a multinational corporation that is later reimbursed by the overseas holding company qualifies as service and hence needs to be taxed under GST here.
The AAAR termed reimbursement of credit card expenses made by employees of Indian subsidiary by the overseas holding company as advance for any such service extended by its Indian operations.
As business services are taxable, so such expenses would attract 18 per cent tax.
The AAAR ruling came on case concerning ICU Medical India LLP, a subsidiary of ICU Medical Inc.
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