Invocing by Branch in India to its Headquarters Abroad
Query (Issue) Started By: – Lakshmi subramanian Dated:- 15-8-2017 Last Reply Date:- 17-8-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts
\nGreat Day
\nAm pleased to enter into this August Forum on this Independence Day.
\nAm practicing Chartered Accountant and am giving below the short notes relating to the captioned title above pertaining to my client.
\nShort Notes on Title above
\nMy client is incorporated abroad and having branch in India as per Permission granted by RBI . The services include submissions of manifests to the customs on behalf of airlines through online by using the web portal of the client and Indian customs.. The branch raises the invoices on the airlines in India with applicable service tax and adhere the service tax compliance. Few airlines are having global contract and straightaway making remittance in its HQ. Branch raises invoice on those cases to HQ with service tax and adhere <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n The Reply: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n he global contract the remittances are made in HQ abroad. Hence the basic classifications of the address in inter state and intra state are difficult to be ascertained. The HQ address is in abroad no GSTIN where as its branch is having GSTIN. Trust the above additional information will be helpful to arrive the conclusion whether CGST 9% +SGST9% or IGST9% is applicable. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n e airlines are having branches all over India, but as per the global contract the remittances are made in HQ abroad. Hence the basic classifications of the address in interstate and intra state are difficult to be ascertained. The HQ address is in abroad no GSTIN where as its branch is having GSTIN. Trust the above additional information will be helpful to arrive at the conclusion whether CGST 9% +SGST9% or IGST9% is applicable. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Invocing by Branch in India to its Headquarters Abroad Query (Issue) Started By: – Lakshmi subramanian Dated:- 15-8-2017 Last Reply Date:- 17-8-2017 Goods and Services Tax – GSTGot 5 RepliesGSTDear Experts Great Day Am pleased to enter into this August Forum on this Independence Day. Am practicing Chartered Accountant and am giving below the short … Continue reading “Invocing by Branch in India to its Headquarters Abroad”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-7145","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7145","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7145"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/7145\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7145"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7145"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7145"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nSir,
\nMy answer is as indicated below: –
\nQuery No 01.
\nWhether CGST and SGST rate (9%+9%) applies or IGST 18% rates applies on invoices raised by branch on HQ.
\nAns: If the registered office or branch of the Airlines and the branch of your client is located in the same state then CGST and SGST rate (9%+9%) will apply.
\nIf the registered office or branch of the Airlines and the branch of your client is located in the different state then IGST @ 18% will apply.
\nIf the Air Lines do not have an office in India and you are raising the invoice on their office located in non-taxable territory, then The Air Lines has to follow the provisions of rule 13 of GST Rules, 2017. Normally the Air Lines which are registered in non-taxable territory will have a branch office in India. Therefore I require further details regarding this.
\nQuery No.02
\nHQ is not having GSTIN. The invoicing amount crosses the basic exemption limit. How to upload GSTR1 without GSTIN.
\nAns: Since your client has<\/p>\n
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\nFurther to your reply on query 02.
\nThe branch has registered with GSTIN and will upload GSTR1. Since the HQ is not having GSTIN, how we can upload the invoices? is it correct to upload the invoices as unregistered dealer?
\nFurther to your reply on query 03,
\nYes, agreed that there won't be any issue in taking inputs credits but am waiting response for q1 & q2 after submitting the additional information. We need to revisit this after having clarity on query 1 & 2
\nReply By RAMESH PRAJAPATI:
\nThe Reply:
\n1) Contract of supply of service is between your client's HO and Airlines. Both are outside India.
\n2) Your cli<\/p>\n
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\nSince both the receiver and provider of service are having branch offices in the taxable territory and are duly registered with the tax authorities the GST is payable by your client's branch office as already suggested.
\nFurther to your reply on query 02.
\nThe branch has registered with GSTIN and will upload GSTR1. Since the HQ is not having GSTIN, how we can upload the invoices? is it correct to upload the invoices as unregistered dealer?
\nSince your client's branch office is registered with the tax authorities they have to upload GSTR1. Your HQ need not get <\/p>\n
For full text:-Visit the Source <\/a><\/p>\n