IATA opposes the government’s move to make foreign airlines liable to pay GST on services provided by their headquarters to local offices in India. The airline body argues that the costs incurred by airline head offices, such as aircraft rental, crew, and pilot costs related to passengers embarking from India, should not be subject to GST. IATA also states that branch offices in India do not play a crucial role in key operations and that all decisions and operations to and from India are controlled by the airlines’ head offices.
Source a2ztaxcorp
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