Export of services: outsourced foreign supply treated as import by exporter with reverse charge and input tax credit available. Where an Indian exporter outsources part of a contract to a nonresident supplier, the arrangement produces two supplies: the Indian exporter's supply to the foreign recipient for the full contract value (treated as export of services if conditions are satisfied) and the import of services by the Indian exporter from the nonresident supplier for the outsourced portion. The Indian exporter is liable to pay integrated tax under reverse charge on the imported portion, may claim input tax credit, and the full contract value can be treated as export realization if reverse charge is paid and RBI permits retention abroad.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Export of services: outsourced foreign supply treated as import by exporter with reverse charge and input tax credit available.
Where an Indian exporter outsources part of a contract to a nonresident supplier, the arrangement produces two supplies: the Indian exporter's supply to the foreign recipient for the full contract value (treated as export of services if conditions are satisfied) and the import of services by the Indian exporter from the nonresident supplier for the outsourced portion. The Indian exporter is liable to pay integrated tax under reverse charge on the imported portion, may claim input tax credit, and the full contract value can be treated as export realization if reverse charge is paid and RBI permits retention abroad.
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