Tax on expat salaries: Japan firm's India unit gets interim relief on GST

The GST authorities had issued a show cause notice to Kanematsu India, demanding over Rs 2.6 crore on reimbursement of expat employees salaries made by the company to the Japanese parent

In yet another case related to Goods and Services Tax (GST) notices on salaries paid to expats by subsidiaries of multinational companies (MNCs), a High Court has provided interim relief to a firm and restrained the authorities from taking coercive measures.

The Punjab and Haryana High Court gave the relief to Kanematsu India, a subsidiary of Japanese company Kanematsu Corporation. GST authorities had issued a show-cause notice to Kanematsu India, demanding more than Rs 2.6 crore on reimbursement of expat employees’ salaries made by the company to the Japanese parent. The company had raised several jurisdictional- and limitation-related preliminary objections in