Financial assistance received in lieu of services to be provided by Indian subsidiary company to holding company in Germany is a supply of service

Last updated: 09 January 2021

Court :
AAR Maharashtra

Brief :
The Hon'ble AAR Maharashtra in M/s. Prettl Automotive India Private Limited [Order No. GST-ARA-20/2019-20/B-59 dated December 15, 2020] held that financial assistance to be received by the Indian subsidiary is a ' consideration' for supply and agreeing to do some acts under contract for the activity of imparting training to students, unskilled workers etc. by an Indian Subsidiary pursuant to financial-aid received under Germany's economic programme for developing countries is 'supply of service' classifiable under SAC Heading 999792 vide Notification-11/2017 - Central Tax (Rate) dated June 28, 2017 (" Services Rate Notification"), which pertains to " Agreeing to do an Act".

Citation :
Order No. GST-ARA-20/2019-20/B-59 dated December 15, 2020