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GST on cross charge/Reimbursement within India and outside India
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....ST on cross charge/Reimbursement within India and outside India<br> Query (Issue) Started By: - Shrikanth Parmarthy Dated:- 21-11-2025 Last Reply Date:- 7-12-2025 Goods and Services Tax - GST<br>Got 4 Replies<br>GST<br>Hi experts, Scenario 1: Employee from Indian Company A travelled to Sister concern in Europe - Company B. The travel and hotel related expenses in Europe were borne by Company A a....
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....nd now the company A in India wants to charge those expenses to Company B without mark up. Query : Will the cross charge be treated as supply and GST is applied on the same. If yes what is the GST rate Scenario 2: Employee from Indian company A located in Tamilnadu travelled to Subsidiary Company in Maharashtra - Company B. The travel and hotel related expenses were borne by Co....
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....mpany A and now the company A in India wants to reimburse those expenses without mark up. Query:Will the cross charge be treated as supply and GST is applied on the same. If yes what is the GST rate Reply By Rajan Kumar and associates: The Reply: In both scenerio, yes cross charge will be applicable for market value of the service provided. The rate of tax will be 18%. This is my vi....
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....ew - Aivar Reply By Sadanand Bulbule: The Reply: Scenario 1: Yes, it is a supply, but since the recipient is abroad, it qualifies as export of service, so GST = 0% (zero-rated) if payment comes in foreign exchange. Scenario 2: Yes, it is a supply between distinct persons within India, so IGST @ 18% is applicable (subsidiary can claim ITC). Reply By Shilpi Jain: The Reply: More Facts needed.....
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.... In scenario 1 - what is the reason that the employee has gone abroad? Is there is supply made by Company A through this employee? whether that itself will be taxable and the travel exp recovered is only a incidental amount to that? In second case if Comp B eligible for full credit no need for cross charge. Reply By Shilpi Jain: The Reply: Also in scenario 2 additional facts required<br> Di....
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