Several MNCs with operations in Gurugram, Haryana, are facing this, said an industry executive, who spoke on condition of anonymity. Tax experts said unless the issue is resolved by way of a clarification, more MNC arms present in cities like Bangalore, Pune and Hyderabad could be hit. Industry bodies have taken up the matter with tax officials, said the official. Experts also said the denial of tax refunds to MNCs by state authorities may be the result of inexperience in handling taxation of services, which in the pre-GST era was handled exclusively by the central government. Although refunds are to come from central and state governments separately to an exporter, claims are processed by one official, which results in approval or denial of a claim.

Source: Mint October 10, 2019 06:56 UTC