Consultant services to Foreign company

[Suresh A]

HI,

I am planning to work for a French company as a Technical consultant (Only services) who sells software. They will pay me fixed amount of Euros every month. I am self emplyment, not a comapny (as free lanser)

My role will be providing software training to the customers. I will not be in direct sales. So, because of this I need to travel India and foreign countries for providing training. In this case, I can reimburse the expenses (on actual with bill). Some times, I need visit the Fairs (India & Abrod), and also Visit my parent company. So, do I need to apply for GST and how these expenses are taxed under GST

1. I recieved Fixed amount of charges every month (may be around 2500 Euro).

2. Expenses when I travel in India (actual)

3. Expenses when I travel in foreign countires (actual)

4. Expenses when I visit Fairs, foreign company.

5. Some times I may provide servises to Indian customers by self. In this also the expenses need to be reimbursed.

6. Any tax credits etc.. I get

Thank you

Suresh

[KASTURI SETHI]

It is inter-State supply. Hence registration is mandatory under Section 24 of CGST Act

SECTION 24.Compulsory registration in certain cases. - Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, -

(i) persons making any inter-State taxable supply;

Further, query-wise reply :

1. It is taxable. Export of service may be under LUT or on payment of IGST. Your supply must qualify as export of service in terms of Section 2(6) of IGST Act, 2017 read with Rule 96 A of CGST Rules, 2017. The whole procedure for export of goods and services has been laid down in Rule 96 A.

(2) Expenses includible in transaction value in terms of Section 15(2) of CGST Act.

(3) Expenses includible in transaction value in terms of Section 15(2) of CGST Act.

(4) Expenses includible in transaction value in terms of Section 15(2) of CGST Act.

(5) Consideration on account of service supplied to the Indian customers is also taxable, it being the part of aggregate turnover as defined in Section 2(6) of CGST Act.

"In this also the expenses need to be reimbursed". Pl. clarify.

(6) Yes. ITC is admissible.

[YAGAY and SUN]

Whatever you charge against supplies of services to you foreign customer will be included in the taxable amount while raising an Tax Invoice on them i.e. gross amount will charged by you including expenses but excluding Pure agent service if any. As service provider, You would also be in need of IEC Number (importer Exporter Code) which you can obtain from DGFT's website. Further, on such service you may also get SEIS under Chapter 3 of the FTP read with HBP vol. 1

[Neeraj Dogra]

Hi Suresh Ji:

Can we please talk in this regard. My mobile number is 9810401176

Regards,

Neeraj

AI Summary

Inter State supply triggers compulsory GST registration and exports of services may proceed under LUT or IGST with transaction value rules.
Inter State consultancy services to a foreign principal require compulsory registration. Supplies qualifying as export of services may be effected under bond/LUT or on payment of IGST, following export procedures. Reimbursed expenses are includible in the transaction value except where pure agent treatment applies. Supplies to Indian customers are taxable and form part of aggregate turnover. Input tax credit is available. An IEC is needed for cross border service transactions and export incentives may be available under the foreign trade policy.