TaxTMI 
TaxTMI 
TaxTMI 
2018 (10) TMI 1315
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns under the Tamil Nadu Goods and Services Tax Act. Takko Holding GmbH is a company incorporated in Germany. They are permitted by RBI to have a Liaison Office of the company at 1/1 J-16, Thannerpandal Colony, Avinashi Road, Anupparpalayam, Tirupur-641652 (hereinafter referred to as 'Takko' or the 'Applicant') under certain conditions. Takko is not registered under GST. The applicant have submitted the copy of application in Form GST ARA-01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST Rules, 2017 and SGST Rules, 2017. They have sought advance ruling on the following : (1) Whether liaison office is liable to pay GST? ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rman office and sent to the supplier in India for their price quote; (2) Prices are collected from various suppliers, and informed to German office; (3) German office confirms the order for the supplier with lowest price quote deliver terms; (4) The order production process are followed by Merchandising Department (collecting data for each stage of the progress till the execution of order) and communicated to German office; (5) The Quality Department audits/monitors the quality parameters of the merchandise on continuous basis until the final inspection of the merchandise & shipment and communicates with the Suppli....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nditions, they are not engaged in any business or furtherance of business as they are only acting as communication channel between German office and Indian exporters. They are not permitted to obtain IE Code, raise invoice on German office and hence are not required to take registration under GST. 3.1 The Applicant was heard in person on 16.05.2018 and 2I.06.2018. They have stated that the Holding company procures Readymade garments based on designs given by them to manufacturers in Tirupur ; they do not have any financial transactions with such suppliers or sister firms around the world; the expenses of administration are paid by Germany office routed through Liaison Office by bank under intimation to RBI; the Germany office alone identif....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nshots of online software supplied by the Applicant that all communication for the various liaison activities are undertaken through electronic means. The activities undertaken by the applicant include communicating to suppliers in India the order enquires received from German office, communicating to German office price quotes received, collecting order sheets and communicating to the concerned supplier. The applicant also coordinates with the supplier on daily basis for producing the readymade garments as per the order sheet received in terms of the design, sampling, quality assurance checks, and audit after production. They also coordinate with the supplier for shipping the goods. The purchase orders for procurement of readymade garments....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ia would not undertake any activity of trading, commercial or industrial nature nor would they enter into any business contracts in its own name without RBIs prior permission. There is no commission/ fees being charged or any other remuneration being received/ income being earned by the office in India for the liaison activities/ services rendered by it. The HO, reimburses the expenses incurred by Takko for their operations in India which are in the nature of salary, rent, security, electricity, travelling etc. They do not have any other source of income. Further the liaison office is strictly prohibited to undertake any activity of trading, commercial or industrial nature or entering into any business contracts in its own name. 4.3 In ord....