GST on services provided to foreign clients in India

[Prakash Gupta]

Dear experts required your view on below mentioned query :

A Company Secretary firm registered in India, incorporated a pvt ltd company for its foreign clients in India . The CS firm raised bill of consultancy fees directly to foreign client and received the same in convertible foreign exchange. Now whether, receipts of CS firm will be subject to GST ?

[Rajagopalan Ranganathan]

Sir,

You have not indicated the place of supply of service. If it is India (taxable territory) then gst is payable though consultancy fees are received in convertible foreign currency. If the place of supply is out side taxable territory (India) then it will amount to export of service which can be done either under bond/LUT without payment of IGST or on payment of IGST. The IGST paid can be claimed as refund after completion of export. Similarly you are eligible to take ITC and the same can be used for payment of IGST. If you export without payment of IGST you can claim refund of tax paid on inputs and input services utilised for export of service.

[KASTURI SETHI]

From the language of query, I think that place of Supply is in India. Hence taxable. I am all praise for crystal clear reply by Sh.Ranganathan, Sir.

[Rajagopalan Ranganathan]

Dear Kasturi Sir,

Thank you for your complimentary remarks.

[Prakash Gupta]

Thank you Rajgopalan and Kasturi Seth Ji,

Further, explanation to my query is as under,

The company has been incorporated in India, say A Pvt Ltd, subsidiary of A Inc. Holding Company (A Inc) is US based. Professional fees invoice has been raised to A Inc (situated in USA). So, I am also not clear about place of the supply in this scenario. Please through some light on place of the supply in this scenario and applicability of the GST, with reference to relevant portion of the Act.

Question regarding GST and Taxation to be applied before making payment to a foreign company.

Sir, I have a One Person Company located in Indian at West Bengal. I will take 'Service' from a foreign company and will pay his Service Fees, through online bank transfer in their currency from my bank account. Now what is the rules for Taxation, before making the payment, as if i have to deduct any amount from the payment amount which has to be paid to government of india ? and what are the compulsory documents should i kept in my custody before making the payment to a foreign company ?

[Thiruppathi K]

Sir,

We are located in Free Trade Warehousing Zone (SEZ), one of the Singapore clinet is our account holder and we are providing warehousing services to our client. we need to bill our Singapore client for our services at FTWZ. Now shall we have to get GST from our Singapore client, is there any notification for that, please clarify me.

Thanks,

Thiruppathi.K

Cmora Cragotech Pvt Ltd,

9500181516

AI Summary

Place of supply determines GST liability for cross-border services; export may be zero-rated under bond/LUT or on IGST payment.
Determination of the place of supply controls GST liability for services to foreign clients: if the place of supply is in India the receipts are taxable; if outside India the service is an export of services and may be zero-rated either under bond/LUT without IGST or on payment of IGST with refund, with entitlement to use input tax credit and to claim refunds of tax on inputs used for the export.