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Reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V. (HO) to the Liaison Office, established in India, is not liable to GST

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Advance Rulings — Supply of Service — The questions/ issues before the Authority for Advance Ruling (AAR) for determination are:-Whether the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V.(HO) to the liaison office established in India is liable to GST as supply of services, especially when no consideration for any services is charged/ paid. Whether the applicant i.e. the Liaison Office is required to get registered under GST? If it is assumed that the reimbursement of expenses and salary claimed by liaison office is a consideration towards a service, then what will be the place of supply of such service? Authority for Advance Rulings Rajasthan held that:—If the liaison office in India does not render any consultancy or other services directly/indirectly, with or without any consideration and the liaison office does not have significant commitment powers , except those which are required for normal functioning of the office, on behalf of Head Office, then the reimbursement of expenses and salary paid by M/s Habufa Meubelen B.V. (HO) to the Liaison Office, established in India, is not liable to GST and the applicant i.e. M/s Habufa Meubelen B.V. Jaipur, is not required to get itself registered under GST.[2018] 51 TUD 293 (AAR-Rajasthan)