Sir
My query is related on the foreign services to be rendered by foreign company in India, these services are Supervision services related to equipment erection at site and site is located in India . The services will be rendered by foreign company for 200 days on intermediate basis and these 200 days services will be consumed in One financial year. Foreign company does not have any permanent establishment in India .
Following are my queries :
- Whether Foreign company can raise there invoice in INR and receive payment in this currency ? Any relevant circular of RBI in this regard.
- As services will be for 200 days ( not on continuous basis) in a financial year. whether that foreign company will be treated as PE in India
Foreign company providing services in India may need GST registration under section 24, with INR payments allowed per RBI. A foreign company providing supervision services related to equipment erection in India for 200 days within one financial year, without a permanent establishment in India, seeks guidance on invoicing and payment in INR. The response advises that if the company occasionally visits India, it may need GST registration as a Non-resident Taxable Person, depending on the service provision method. If services are provided online, registration under section 24 of the CGST Act, 2017 is mandatory. Payments in INR are permissible, referencing RBI notification FEMA 14(R)/2016-RB dated 02nd May 2016. If GST registration is not required, the recipient must pay under RCM for import services. (AI Summary)
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