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TMI Blog2021 (4) TMI 937X X X X Extracts X X X X X X X X Extracts X X X X ..... taxable value of such services and attract the same rate indicated in the tax invoice for the software development charges issued by the appellant on the overseas holding company. Appeal disposed off. X X X X Extracts X X X X X X X X Extracts X X X X ..... he employees of the appellant use the credit card for procuring travel related services for/on behalf of Appellant. In this regard, normally the vendor raises invoice on the Appellant and the Appellant claims eligible credits based on the invoices. In cases where invoices are raised on the employees (e.g. online order of food, cab etc), GST credit is not taken on the same. 2.2 It was stated that the Employees of the appellant submit expenses statement along with supporting documents by 20th of every month for the transactions incurred up to 15th of that month. ICU Inc. downloads and shares the monthly credit card statement with the appellant. The Appellant books the expenses in its books based on the invoices provided by the employees and the credit card statement. Appellant debits the respective expenses account and credits the intercompany payable account. Where Input tax credit is involved, the eligible GST amount will be debited to the GST Input Tax credit account by crediting the expenses Account. Subsequently, ICU Inc. recovers this amount from Appellant. A commercial invoice is raised by ICU Inc. on the appellant for the reimbursement towards payment for expenses incurred b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der erred in holding that ICU Inc., is providing credit granting services to the Appellant; * The impugned order has erred in stating that the Appellant has to pay ICU Medical Inc for the privilege of using the credit card; * The impugned order has erred in not considering the fact that independent service providers provide travel and conveyance services on which the service provider has raised invoice on the Appellant independently. ICU Inc., merely collects the amount relating to such expenses relating to Appellant for settling the credit card dues; * The appellant is the recipient of goods or services and availing the eligible input tax credit based on the tax invoices issued by the suppliers; * the payments made by the appellant to the ultimate holding company towards reimbursement of payments made towards credit card expenses are transaction in money and not a supply and consequently, the same is not liable to GST under Reverse Charge Mechanism, PERSONAL HEARING: 4. The Appellant was granted personal hearing as required under law before this Appellate Authority on 22nd January 2021. The Authorized representatives of the Appellant Thiru. Siddarth Chandrasekhar, Thiru. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dertaking business activities like travel, accommodation, food, etc. The entire business of the appellant being with the overseas holding company and the expenses being part of the software development cost (as admitted by the appellant himself), it is simple and clear that these expenses, even when they are paid back (reimbursed) by the appellant to its recipient of services (overseas holding company) and later included in the taxable value in the invoice of the appellant are nothing but part of the consideration received by the appellant from its recipient. In other words, the expenses borne by the recipient overseas holding company of the appellant and later reimbursed but again included in the taxable invoice are in the nature of advance consideration paid by the recipient to the supplier appellant and the time of supply provisions relating to advances received by a supplier of services as per Section 13 of the GST Act will be applicable. 5.3 The fact of reimbursement does not result in any transaction in its own, as was held by the AAR, but such expenses of employees of appellant through the credit card of the overseas holding company (recipient of the supply of appellant), b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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