GST - Reimbursement of Expenses - Export of service

[KSA Associates]

Mr. A is MD of software company ABC Ltd. ABC Ltd is subsidiary company of XYZ Ltd. (USA). Mr. A went to USA to meet the officials of the parent company for business purpose. During his visit, Expenses like Hotel stay, Air tickets, cab etc. were incurred. All this expenses were borne by ABC lTD. Now ABC ltd is raising the invoice on parent company to recover this expenses incurred. Comment whether this will be treated as Export of services? Also let us know which SAC code should be used for this.

AI Summary

Software Subsidiary Seeks Expense Recovery from Parent Company Under Complex GST Service Export Regulations A software company subsidiary incurred expenses during a business trip to its parent company's location in the USA, including hotel, travel, and transportation costs. The subsidiary seeks to invoice the parent company for expense recovery. Legal experts debate whether this constitutes an export of services under GST regulations, with varying perspectives on tax treatment, invoicing methodology, and potential compliance requirements.