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TMI BlogApplicability of Service tax registrationX X X X Extracts X X X X X X X X Extracts X X X X ..... Applicability of Service tax registration X X X X Extracts X X X X X X X X Extracts X X X X ..... office has an fixed establishment in India, will it require to get registered under Service Tax? And if it is registered under Service TAx and does billing in respect of the project, then what is the difference between project office doing business in India and branch doing business in India? Reply By ASHOK: The Reply: A foreign enterprise or entity can set up business operations in India either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as (a) an Incorporated Entity or (b) as an Unincorporated Entity.An A Foreign Company can operate in India as an Unincorporated Entity in the form of a liaison/representative office, or a Branch office, or a Project office. Opening of such offices is governed by the Foreign Exchange Management Regulations, 2000, which places restrictions on the activities and operation of such offices.With partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular reference to project office and branch office, the details are as under: A Project office cannot undertake or carry on any activity other than the activity relating and incidental to execution of the concerned project. Branch offices are also not allowed to carry on manufacturing, processing and retail trading activities of any nature in India.A branch office can represent the parent company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India, act as buying/selling agent in India and is authorized to Export and Import goods. A branch offices can, however, acquire immovable properties in India, which is/are necessary for or incidental to carrying on the activities thereof. Hence as you may see, the essential difference between the two forms is self explanatory. Like for instance the project office cannot undertake Import and ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port business or it cannot acquire an immovable propety etc. If the activities of the project office is covered within the defintion of taxable services under the service tax act, it will be requried to get registered under the Service Tax Act, may be as a service provider or as a servicer receiver liable to make payment of service tax. To your query as mentioned in the last part, take not that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e project office is doing billing only in respet of the concerned project whereas, the branch office may be doing billing in the course of export of goods, billing in the process of acting as buying/selling agent etc. X X X X Extracts X X X X X X X X Extracts X X X X
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