TaxTMI 
TaxTMI 
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?
Applicability of Service tax registration
12 Dec 2008 
1 Reply 
7664 Views Asked by
Service tax registration: project offices must register if activities constitute taxable services and branches differ in permitted activities and billing.
A Project office may only perform activities incidental to the specific project and is restricted from import/export and acquiring immovable property, while a Branch office may represent the parent company, act as buying/selling agent, import and export goods, and acquire immovable property necessary for its activities. If activities of a project office fall within the definition of taxable services, it must register and comply under the Service Tax Act either as a service provider or as a service receiver liable to pay service tax. (AI Summary)
A Project office may only perform activities incidental to the specific project and is restricted from import/export and acquiring immovable property, while a Branch office may represent the parent company, act as buying/selling agent, import and export goods, and acquire immovable property necessary for its activities. If activities of a project office fall within the definition of taxable services, it must register and comply under the Service Tax Act either as a service provider or as a service receiver liable to pay service tax. (AI Summary)