MUMBAI : The govt has cleared air on GST application to salaries of chief executives in various head offices, saying there will be no such imposition.
The move comes after the tax department sent notices to various companies on how the headquartered costs such as that of CEO salaries, central audit, IT services etc was structured in the expenditure list.
The taxmen were looking to find if common costs were passed on to the branches.
The CEO salaries will not come into the ambit, authorities have now clarified.
However the tax dept wants companies to proportionately distribute common costs from head office to branches and treat this as a supply. Once treated as a supply, 10% of it is to be added to the cost and an 18% GST could be levied.
