Valuation of import of services: invoice value deemed open market value where recipient is eligible for full input tax credit. Where a registered person in India imports services from a related overseas person and is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value; if no invoice is issued by the foreign affiliate the recipient may deem the value declared as nil and treat that nil value as the open market value. Tax on such import of services is payable by the Indian recipient under the reverse charge mechanism, and the recipient must issue a self-invoice and pay tax accordingly.
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.
Valuation of import of services: invoice value deemed open market value where recipient is eligible for full input tax credit.
Where a registered person in India imports services from a related overseas person and is eligible for full input tax credit, the value declared in the invoice shall be deemed to be the open market value; if no invoice is issued by the foreign affiliate the recipient may deem the value declared as nil and treat that nil value as the open market value. Tax on such import of services is payable by the Indian recipient under the reverse charge mechanism, and the recipient must issue a self-invoice and pay tax accordingly.
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