Case Law Details
In re Wihelm Fricke Se (GST AAR Haryana)
Q1. Whether the reimbursement of expenses and salary paid by Wilhelm Fricke SE, Germany to the liaison office established in India is considered as supply of services as per Section (7) of the CGST Act, 2017 or under Schedule I of CGST Act, 2017, especially when no consideration for is charged/ paid.
When the applicant/liaison office is working as per the terms and conditions as mentioned above, the reimbursement of expenses and salary paid by M/s Wilhelm Fricke SE to the liaison office, does not fall under service, as no consideration for any services is being charged by the liaison office. Further, the kind of reimbursement claimed by them from their HO is also falling out of the purview of supply of service and as there are no such taxable supplies made by the Liaison office.
Q2. Whether the applicant i.e. the Liaison Office is required to get registered under GST?
The applicant is not required to get them registered under GST Act.
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