Eif, Tower in Paris, France

New Delhi, July 9 The Indian operations of French aviation giant Airbus involving procurement of raw material from local vendors and facilitating supply abroad are 'intermediary services' and hence liable to 18 per cent GST, an authority of advance ruling (AAR) has ruled.Airbus Group India went to Karnataka bench of AAR seeking clarity on whether the services rendered by it to its holding company in France qualified as export of services and hence treated as zero rates supply not liable to GST.Airbus Group India Pvt Ltd is a subsidiary of Airbus Invest SAS, France (Holding Company) and its ultimate holding company is Airbus SE, Netherlands. Globally Airbus Group is an international pioneer in aerospace industry and is a leader in designing, assembling and delivering aerospace products, services and solutions to its customers on a global scale.The AAR ruled Airbus India operations as that of an intermediary citing that it cannot be treated as an agent or broker that undertake supplies on behalf of their clients. In case of Airbus, the Indian subsidiary was acting as an intermediary for making supplies to parent entity not on its own account."The services rendered by the applicant do not qualify as export of services and consequently are exigible to GST at the rate of 18 per cent," the AAR said.The ruling once highlights deep divide between the industry and revenue department over qualification of intermediary service.Rajat Mohan, senior partner, AMRG & Associate said that Levying of GST by tax authorities on marketing services, back-end office assistance, customer relations, accounting, administration, liaison operations, and managing various documentation requirements offered to clients situated outside India has remained inconsistent in the country creating confusion over the applicability of GST.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

EifFOLLOW

Eif, Latest News

Paris, July 21 A new Covid-19 health pass has come into effect in France amid a surge in ... ...

Netflix is teaming with Romain Gavras, the French-Greek filmmaker best known for French comedy 'The World is Yours' and 'Our Day Will Come', for his next film which will start production this week in France. ...

France on Tuesday (local time) called on all its citizens in Afghanistan to leave the country as the Taliban pressed ahead with a major offensive amid the withdrawal of foreign troops. ...

San Francisco, July 13 Tech giant Google has been hit with a 500 million euros fine by France's ... ...

Paris, July 13 French President Emmanuel Macron said that Covid-19 vaccination will be mandatory for health workers as ... ...

London, July 11 Indian-American Samir Banerjee won the boys' singles title, beating Viktor Lilov 7-5, 6-3 in an ... ...

Delhi Sikh Gurdwara Management Committee (DSGMC) chief Manjinder Singh Sirsa on Saturday said he will file case against Sarnas in High Court for "issuing misleading, false and derogatory statements" against him about a court order. ...

New Delhi, July 9 The Indian operations of French aviation giant Airbus involving procurement of raw material from ... ...