We are merchant exporter, a machinary in Congo requires installation and commissioning. So we send a person from Germany (manufacturer of machinary) for such Installation and Commissioning.The party from Germany raises a Bill in our name and we raises bill to the Congo Party.
How this transaction will be treated?
In which purpose code of RBI we can make payment and receive for such transaction?
Is there a need to close E-BRC?
Is TDS is required to be deducted?
Do we require FORM 15CA and 15CB also as there is no TDS to be deductible on such transaction.?
Merchant Exporter Queries Service Export Rules for Machinery Installation in Congo; Clarification on RBI Codes and TDS Needed. A merchant exporter queries about the treatment of a transaction involving machinery installation in Congo by a German manufacturer. The exporter raises an invoice to the Congo party, while the German party invoices them. The discussion addresses whether this is an export of services, applicable RBI purpose codes, the necessity of closing E-BRC, TDS deductions, and the requirement for Forms 15CA and 15CB. Responses suggest treating it as a service under FTP and Place of Provision of Services Rules, with differing views on whether the exporter acts merely as an intermediary or if service export occurs. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
