Nasscom red flags GST tangle in IT’s head office-branch deals

The current Goods & Services Tax (GST) framework is treating internal transactions between head offices and branches of information technology(IT) companies as taxable events, leading to artificial tax liability being created, industry body Nasscom has said. Despite being internal allocations within the same company, and not supplies between different entities, these tax burdens are piling up procedural difficulties for IT companies, it has said in a recent statement.

Currently, an Indian IT company signs a master agreement with a foreign client…