18% GST applicable on salary paid for services by a firm to its branch offices by AAR


18% GST applicable on salary paid for services by a firm to its branch offices by AAR
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Friday, August 17, 2018
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Dear All,

Your association SIMA is forwarding herewith an article published by The Economic Times regarding the GST Rates on the salary paid for services by a firm to its branch offices. The copy of the article is enclosed herewith for your ready reference.

The article state that the salary for services like Accounting, IT, Human Resources provided by the head office of a company to its branch offices in other states will attract 18 per cent GST. As per the order passes by the Karnataka bench of the Authority for Advance Ruling(AAR), the activities between two offices are treated as supplies under the GST law. The GST charged on such supplies can be claimed as input tax credit(ITC), companies which are exempt from GST will not be able to claim credit.

This article will help the colleague industries to understand the GST regime applicable to them for their respective industry. So you are requested to please go through the attachment.

Thanking you,
With regards,

For Silvassa Industries & Manufacturers Association

Narendra Trivedi
Secretary


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