The Government of Tripura on July 19, 2023, issued a Clarification regarding the taxability of services provided by an office of an organization in one State to the office of that organization in another State, both being distinct persons. The circular issued by CBIC is being attached to be followed.
The following has been stated in the CBIC circular namely: -
• In cases where full input tax credit is available to a BO, the value declared on the invoice by HO to the said BO in respect of a supply of services shall be deemed to be the open market value of such services.
in cases where full input tax credit is available to the recipient, if HO has not issued a tax invoice to the BO in respect of any particular services being rendered by HO to the said BO, the value of such services may be deemed to be declared as Nil by HO to BO, and may be deemed as open market value.
• In respect of internally generated services provided by the HO to BOs, the cost of salary of employees of the HO, involved in providing the said services to the BOs, is not mandatorily required to be included while computing the taxable value of the supply of such services.
[Notification No. 11/2023 – GST (State)]
