Tax on expat salaries: Japan firm's India unit gets interim relief on GST Case related to #GST #notices on salaries paid to expats by subsidiaries of MNCs, a High Court has provided interim relief to a firm and restrained the authorities from taking coercive measures.

The Punjab and Haryana High Court gave the relief to Kanematsu India, a subsidiary of Japanese company Kanematsu Corporation.

GST authorities had issued a show-cause notice to Kanematsu India, demanding more than Rs 2.6 crore on reimbursement of expat employees’ salaries made by the company to the Japanese parent.

The company had raised several jurisdictional- and limitation-related preliminary objections in response to intimation by GST authorities. These objections were not addressed in the show-cause notice, the court observed.