RCM Applicability on reimbursement to employee

[Ashiesh Prremji]

Dear Sir,

Please suggest whether Import of Service for training purpose of employee will liable for RCM for employer?

Invoice is in the name of employee, will such reimbursement come in employee-employer relationship?

Thanks for your valuable suggestion!

AI Summary

Reverse charge on imported employee training: reimbursement may trigger RCM or registration depending on recipient treatment.
Whether the employer must discharge tax under the reverse charge mechanism where an employee procures a foreign online training in his own name and is later reimbursed. The service is an import under Section 13(12) and classifiable as commercial training (SAC 999293). One view treats the supply as personal consumption so reimbursement does not attract RCM and ITC is unavailable; alternative views note Notification No.10/2017 and Section 24 may compel registration and RCM if the supply is treated as inter state import and the recipient is liable.