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Liasion Office not liable for GST registration or payment of GST: Kar AAAR

The Karnataka Appellate AAR has overruled AAR ruling to provide much-awaited relief to tax incidence on LO/BO/AO activities. It has held that a Liasion Office (LO), carrying out activities permitted by the RBI, is merely a geographical extension of the Parent Company and the services provided to Parent Company are services to self and does not constitute supply.

This opens up a professional opportunity to claim a refund of taxes paid hitherto.

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