Allocation of Corporate Product Manager cost 2 its Indian subsidiary,Will it be an import of service

[Sanjeev Sharma]

A foreign parent company allocates the cost of its Corporate Product Manager ( who looks after the particular businesss of all the companies in the group) to its all subsidiaries (including indian subsidiary Co.) around the world. For Indian subsidiary, will it be an import of service ? If yes, under which category ??

AI Summary

Does Cost Allocation of Foreign Manager to Indian Subsidiary Constitute Import of Service? Clarification Needed. A foreign parent company allocates the cost of its Corporate Product Manager to all its subsidiaries, including an Indian subsidiary. The question arises whether this allocation constitutes an import of service for the Indian subsidiary and under which category it falls. One response suggests it might be taxable as an import of service, questioning the nature of the allocation. Another response indicates that if the manager's role involves market development, it could be categorized under business auxiliary services, or management consultant services if related to product design. The discussion emphasizes the need to clarify the nature of the service.