Activities performed by Liaison office of Dubai Chamber of Commerce shall be treated as supply under GST law.
Authority for Advance Ruling — Intermediary service between Foreign and Indian based company – The applicant M/s Dubai Chamber of Commerce & Industry- Liaison office (DCCI LO) is established by DCCI UAE in Mumbai, is a non-profit organization, formed to represent, support and protect the interests of the Dubai business community in India. The Applicant shall undertake liaison/ representation activities in India such as liaison between India office and Dubai office; attending and representing DCCI in various seminars, conferences & trade fairs; organizing events & interactions with Indian stakeholders for sharing information about Dubai. All expenses incurred by applicant are to be reimbursed from DCCI UAE on cost-to-cost basis. Thus, applicant is a mere extension of DCCI UAE. Reimbursement of expenses received from DCCI UAE cannot be treated as consideration under GST law and hence, Applicant is not liable to obtain GST registration. The applicant sought an advance ruling as to (i) whether activities performed by DCCI LO shall be treated as supply under GST law; whether DCCI LO is required to obtain GST registration and whether DCCI LO is liable to pay GST. The authority observed that the applicant connects businesses in India with business partners in Dubai and providing services, to various business in India and Dubai and the applicant is receiving consideration from its Head Office in excess of expenses incurred by it.
Held that:- The Hon’ble Authority for Advance Ruling held the applicant is providing intermediary services for which it is liable to pay GST, hence it is required to get registration.
Activities performed by Liaison office of Dubai Chamber of Commerce shall be treated as supply under GST law.
Authority for Advance Ruling — Intermediary service between Foreign and Indian based company – The applicant M/s Dubai Chamber of Commerce & Industry- Liaison office (DCCI LO) is established by DCCI UAE in Mumbai, is a non-profit organization, formed to represent, support and protect the interests of the Dubai business community in India. The Applicant shall undertake liaison/ representation activities in India such as liaison between India office and Dubai office; attending and representing DCCI in various seminars, conferences & trade fairs; organizing events & interactions with Indian stakeholders for sharing information about Dubai. All expenses incurred by applicant are to be reimbursed from DCCI UAE on cost-to-cost basis. Thus, applicant is a mere extension of DCCI UAE. Reimbursement of expenses received from DCCI UAE cannot be treated as consideration under GST law and hence, Applicant is not liable to obtain GST registration. The applicant sought an advance ruling as to (i) whether activities performed by DCCI LO shall be treated as supply under GST law; whether DCCI LO is required to obtain GST registration and whether DCCI LO is liable to pay GST. The authority observed that the applicant connects businesses in India with business partners in Dubai and providing services, to various business in India and Dubai and the applicant is receiving consideration from its Head Office in excess of expenses incurred by it.
Held that:- The Hon’ble Authority for Advance Ruling held the applicant is providing intermediary services for which it is liable to pay GST, hence it is required to get registration.