Valuation of import of services: invoice-declared value deemed open market value where recipient claims full input tax credit. Where a registered person in India imports services from a related person outside India and is eligible for full input tax credit, the value declared in the recipient's invoice/self-invoice shall be deemed to be the open market value under the second proviso to Rule 28(1). The recipient must pay tax under reverse charge and issue a self-invoice; if no invoice is issued and the recipient declares Nil, that Nil declaration may be treated as the open market value for valuation purposes.
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-declared value deemed open market value where recipient claims full input tax credit.
Where a registered person in India imports services from a related person outside India and is eligible for full input tax credit, the value declared in the recipient's invoice/self-invoice shall be deemed to be the open market value under the second proviso to Rule 28(1). The recipient must pay tax under reverse charge and issue a self-invoice; if no invoice is issued and the recipient declares Nil, that Nil declaration may be treated as the open market value for valuation purposes.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
