Applicability of Service tax registration

[Bakul Gandhi]

What is the difference between a Project Office and Branch under F.E.M.A? I feel that Project office is for a specific Contract and it is set up for assisting foreign company in executing the project. Since the project office has an fixed establishment in India, will it require to get registered under Service Tax? And if it is registered under Service TAx and does billing in respect of the project, then what is the difference between project office doing business in India and branch doing business in India?

AI Summary

Foreign Firms in India: Choose Incorporated or Unincorporated Entity; Understand Limitations Under Foreign Exchange Management Regulations, 2000. A foreign company can establish business operations in India as either an incorporated or unincorporated entity. Unincorporated entities include liaison, branch, or project offices, governed by the Foreign Exchange Management Regulations, 2000. A project office is limited to activities related to a specific project and must register under the Service Tax Act if its activities are taxable. In contrast, a branch office can represent the parent company, engage in import/export, and acquire necessary immovable properties but cannot undertake manufacturing or retail trading. The key distinction lies in their permissible activities and billing scope.