TaxTMI 
TaxTMI 
GST - Reimbursement of Expenses - Export of service
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....ST - Reimbursement of Expenses - Export of service<br> Query (Issue) Started By: - Indirect Tax Dated:- 15-3-2025 Last Reply Date:- 9-4-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Mr. A is MD of software company ABC Ltd. ABC Ltd is subsidiary company of XYZ Ltd. (USA). Mr. A went to USA to meet the officials of the parent company for business purpose. During his visit, Expenses li....
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....ke Hotel stay, Air tickets, cab etc. were incurred. All this expenses were borne by ABC lTD. Now ABC ltd is raising the invoice on parent company to recover this expenses incurred. Comment whether this will be treated as Export of services? Also let us know which SAC code should be used for this. Reply By Ganeshan Kalyani: The Reply: It is the recovery of expense by subsidiary company from its p....
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....arent company. This is taxable as per entry 2 of Sch I. Reply By RaamSrinivasan Kalpathi: The Reply: I am of the opinion that the expenditure would constitute export of services but needs to be structured for GST purposes. Would suggest to treat the expenses as composite supply u/s. 2(30) (i.e.) in the next export of services invoice a separate line item can be introduced under the same SAC 9983....
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....13 (or whatever) stating reimbursement. Raising a separate invoice specifically for reimbursement may be viewed by the department as a taxable supply. Reply By Shilpi Jain: The Reply: Should be invoiced in such a way that it is composite supply with the main supply and should be treated as an export of services and not liable to GST. Same HSN as that of main service to be used. Reply By K....
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....ALLESHAMURTHY MURTHY: The Reply: Dear Querist, Reimbursement of expenses is taxable under GST as import of services. Any other way used to recover the amount of expenditure would remain unsettled in the accounts of the subsidiary unit and also it would be treated as a wilful attempt of tax evasion under GST, if the fact is analysed by the departmental authorities. This is my ....
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....view only and is not to be considered as a legal opinion.<br> Discussion Forum - Knowledge Sharing ....