 "GST, goods and services tax")
Services offered by the office of a company to its branches in other states will attract GST, the Karnataka bench of the Authority of Advance Rulings (AAR) has said, in what is seen as an adverse ruling for the industry.
This means that any service provided by a company’s human resource or finance department to branches in other cities will be treated as supply, and the company will have to pay Goods and Services Tax (GST) on that.
Although the tax could be claimed as an input credit by the location receiving the service, it might increase the compliance burden for companies.
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