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Inter-co managerial/leadership services to attract 18% GST

Inter-co managerial/leadership services to attract 18% GST

Managerial and leadership services by corporate office to its group companies/construction sites registered in different states would attract 18 per cent GST, Maharashtra bench of AAR has ruled.

B G Shirke Construction Technology Pvt Ltd had approached the Authority for Advance Ruling (AAR) seeking to know whether the managerial and leadership services provided by the registered/corporate office to its group companies would be considered as ‘supply of service’.

Also, whether the lump sum amount charged by the registered/corporate office on its group companies would be liable to Goods and Services Tax (GST).

Passing its ruling, the Maharashtra AAR held that managerial and leadership services by corporate office to its group companies and other construction sites registered in different States is “supply of service” and would be taxable under GST.

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