Statutory Compliances for Payment to International Suppliers via Credit Cards

[AshaKanta Sharma]

Hi Experts,

Please guide regarding statutory compliance needs to be followed in order for payments being made via Credit Cards to suppliers outside India. Do we need to pay GST on RCM Basis and whats are the compliance required in terms of Income Tax Deductions for the said payments.

Please help me on this....

Thanks

Asha Kanta Sharma

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AI Summary

Clarification on using credit cards for international supplier payments: TDS not needed for goods; GST applies to services. A participant inquired about the statutory compliance for making payments to international suppliers via credit cards, specifically regarding Goods and Services Tax (GST) and income tax deductions. The response clarified that payments for importing goods can be made in foreign exchange through international credit cards, provided they comply with Reserve Bank of India regulations and the Foreign Trade Policy. No Tax Deducted at Source (TDS) is required for goods, but a Bill of Entry must be filed. For services, GST must be paid under the Reverse Charge Mechanism.