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18% GST on salary paid for services by a firm to its branch offices in other states, rules AAR

Aug 14, 2018

18% GST on salary paid for services by a firm to its branch offices in other states, rules AAR

Salary for services like accounting, IT, human resource, provided by the head office of a company to its branch offices in other states will attract 18 per cent GST.

According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law. Click to read more

Salary costs at headquarters to attract 18% GST for services given to offices in other states: AAR

Salary for services like accounting, IT, human resource, provided by the head office of a company to its branch offices in other states will attract 18 percent GST. According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law.

It said the valuation of supply will include all costs, including the employee cost provided by one distinct entity to the other distinct entities. Click to read more

Head office salary costs to attract 18% GST for services to offices in other states

Salary for services such as accounting, IT, and human resource provided by the head office of a company to its branch offices in other states will attract 18% GST. According to an order passed by the Karnataka Bench of the Authority for Advance Rulings (AAR), activities between two offices are treated as supplies under the GST law. It said the valuation of supply would include all costs, including the employee cost, provided by one distinct entity to other distinct entities. Click to read more

Civil aviation ministry to press for GST on jet fuel

The civil aviation ministry will press for inclusion of jet fuel in the goods and services tax (GST) so that airlines struggling with high cost of fuel and a weaker rupee secure some relief. Although in a deregulated sector like airlines, where the government can do little to bail out businesses, the civil aviation ministry is looking at what is within its reach to ease the industry’s pain.

Civil aviation minister Suresh Prabhu told reporters in New Delhi that airlines are struggling with high cost of fuel not just in India, but across the world. “Fuel is an important variable cost for airlines. We are aware of the situation,” said Prabhu, declining to elaborate on the matter. Click to read more

Putty manufacturing companies penalised for not passing on GST rate cut benefit

The department of Legal Metrology has penalised two wall putty manufacturing companies in Jammu allegedly for not passing on the benefit of GST rate cut to consumers.

The two companies did not mark revised rates on their products after the central government slashed GST slab on such items from 28 percent to 18 percent.

The cases of both the companies were compounded and penalty of Rs 75,000 was imposed and recovered, an official spokesman said. Click to read more

Customer can play role of king to stop GST evasion

IT MAY sound odd to our ears. But, those who are habitual not to pay tax have discovered exit route, even Government wants to tame the goose with its new stick of GST. After lapse of one year of introducing the historic indirect tax system — Goods and Services Tax (GST) — there have been glaring instances of many traders and entities using clever methods to conceal profits and evade

paying taxes, sources in the trade alleged. They have given some glaring examples of malpractices under GST.

Business entities with turnover of more than Rs 20 lakh per annum have to take registration under GST. But, there are some traders who are not taking GST registration even though their turnover is above Rs 20 lakh per annum. Thus, such entities avoid paying tax on the turnover of more than Rs 20 lakh per year. Click to read more

Govt moves to shut GST loophole on charities’ asset sales

The government is moving to close a GST loophole that could have created a “significant but unquantified” risk to the Crown’s revenue.

A supplementary order paper introduced today clarifies the rules on GST and will prevent non-profit groups from avoiding GST on income from asset sales, Revenue Minister Stuart Nash says.

The change was signalled in a May 15 issues paper and will be effective from that date. It stems from a new interpretation by Inland Revenue’s Office of the Chief Tax Counsel as to what constitutes the taxable activities of a not-for-profit organisation. Click to read more

The Beer Café Waives Off GST And VAT In New Delhi, Gurugram Starting This Independence Day

The Beer Café, India’s largest alco-beverage chain, has geared up to delight beerophiles in town by giving them freedom from taxes. Customers visiting The Beer Café outlets in New Delhi and Gurugram will now be able to get their fill of a wide range of premium domestic and international brews offered by the chain – entirely tax-free! With VAT and GST charges waived off from their bills, customers will only be required to pay the applicable service charge in addition to the cost of their orders. The brand will bear the government taxes applicable to the bill on behalf of its patrons. Click to read more

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