https://www.taxtmi.com/caselaws?id=431390 The AAR Maharashtra held that a wholly owned subsidiary transferring monetary proceeds to its foreign parent company for support services must pay IGST under reverse charge mechanism. The applicant company, while executing a contract with MCGM based on its Swedish parent's credentials, received essential support services enabling contract performance. Despite claiming no service import, the AAR found definite services were supplied by the Swedish entity to enable the Indian subsidiary's contract execution. Under Notification 10/2017 entry 1, IGST is payable on reverse charge basis when services are supplied from non-taxable territory to taxable territory, making the recipient liable for tax payment. en-us Thu, 01 Dec 2022 00:00:00 +0530 Fri, 11 Apr 2025 15:52:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=431390 The AAR Maharashtra held that a wholly owned subsidiary transferring monetary proceeds to its foreign parent company for support services must pay IGST under reverse charge mechanism. The applicant company, while executing a contract with MCGM based on its Swedish parent's credentials, received essential support services enabling contract performance. Despite claiming no service import, the AAR found definite services were supplied by the Swedish entity to enable the Indian subsidiary's contract execution. Under Notification 10/2017 entry 1, IGST is payable on reverse charge basis when services are supplied from non-taxable territory to taxable territory, making the recipient liable for tax payment. Case-Laws GST Thu, 01 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=431390