Export of services: contract value treated as export if IGST on imported services is paid and RBI permits retention. Where an Indian exporter outsources part of services to a foreign supplier, the contract gives rise to a supply from the Indian exporter to the overseas recipient for the full contract value and an import of services by the Indian exporter for the outsourced portion. The Indian supplier must pay IGST under reverse charge on the imported portion and may claim input tax credit. The total contract value may be treated as export consideration despite direct payment to the foreign supplier if IGST on the import is paid and RBI permits retention of part of the consideration 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: contract value treated as export if IGST on imported services is paid and RBI permits retention.
Where an Indian exporter outsources part of services to a foreign supplier, the contract gives rise to a supply from the Indian exporter to the overseas recipient for the full contract value and an import of services by the Indian exporter for the outsourced portion. The Indian supplier must pay IGST under reverse charge on the imported portion and may claim input tax credit. The total contract value may be treated as export consideration despite direct payment to the foreign supplier if IGST on the import is paid and RBI permits retention of part of the consideration abroad.
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