No GST is applicable on Salary reimbursed on behalf of Foreign Entity : AAR

No GST is applicable on Salary reimbursed on behalf of Foreign Entity : AAR

Maharashtra Authority of Advance Ruling in matter of DRS Marine Services Pvt. ltd.

The Extract of Advance Ruling is Given below for Reference :

From the above provisions of Rule 33 and the facts of the proposed transaction explained by the applicant, we find that the applicant will be acting as a pure agent of RMS in as much as the entire amount received by them as Crews' Salary will be disbursed to the Crew and no amounts from the said receipt will be used by the applicant for his own interest. In fact, for performing as a pure agent they will also be receiving compensation separately in the form of fixed fees to be charged as service charges.

In view of the above we are of the opinion that the applicant will not be liable to pay GST on Salary amount received from RMS and disbursed to the Crew.

05. In view of the extensive deliberations as held here in above, we pass an order as follows: