ACCOUNTANT

[rajesh subramanian]

Dear sir,

We are pvt Ltd, 100 % EOU , and hiring consultancy service FROM AN FOREIGN INDIVIDUAL who is having PAN

for this transaction we need to pay GST under RCM?

Please guide us

Rajesh.S

ETAPL - Ph : 9943413496

[DR.MARIAPPAN GOVINDARAJAN]

Whether the said foreign individual is in India or abroad? Whether he is an individual or business entity? If so whether they are having permanent establishment in India?

[KASTURI SETHI]

Dear Querist, You are required to pay GST under RCM. You are covered under Section 5(3) of IGST Act, 2017. You are also a body corporate business entity. Under GST EOU is at par with other DTA unit. No exemption.

[Ganeshan Kalyani]

In my view, the service is imported. So, IGST to be paid by you under reverse charge method. Thanks.

AI Summary

Reverse charge: IGST payable on imported consultancy services procured from a foreign individual by an EOU. The service is an imported service and the recipient 100% EOU (a body corporate) must pay IGST under the Reverse Charge Mechanism, with the liability to discharge tax placed on the recipient under Section 5(3) of the IGST Act and no exemption afforded by EOU status.