Export of services: full contract value treated as export if reverse charge IGST is paid and RBI permits foreign retention. Where an Indian exporter outsources part of services to a foreign supplier, two supplies occur: the exporter supplies the full contract value to the foreign recipient and imports the outsourced portion from the foreign supplier. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. The entire contract value may still qualify as export consideration even if part is paid directly abroad, provided reverse-charge tax is paid and RBI permits retention outside India.
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: full contract value treated as export if reverse charge IGST is paid and RBI permits foreign retention.
Where an Indian exporter outsources part of services to a foreign supplier, two supplies occur: the exporter supplies the full contract value to the foreign recipient and imports the outsourced portion from the foreign supplier. The Indian supplier must pay integrated tax under reverse charge on the imported portion and may claim input tax credit. The entire contract value may still qualify as export consideration even if part is paid directly abroad, provided reverse-charge tax is paid and RBI permits retention outside India.
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