Import of Service

[Kaustubh Karandikar]

Mr. X is on the pay roll of XYZ, France but is working in India for PQR and will receive instructions from PQR India. The salary and other expenses of Mr. X and the family of Mr. X who is staying in France, is initially paid by XYZ, France and subsequently recovered from PQR, India by issuing an Invoice in foreign currency. Is PQR required to pay GST under reverse charge on the amount paid to XYZ, France?

AI Summary

PQR Liable for GST Under Reverse Charge for Reimbursements to XYZ for Mr. X's Work in India. Mr. X, employed by XYZ, France, works in India for PQR, receiving instructions from PQR India. XYZ initially pays Mr. X's salary and expenses, later invoicing PQR in foreign currency for reimbursement. The query is whether PQR must pay GST under reverse charge for payments to XYZ. The response clarifies that since Mr. X works in India, the place of supply is within a taxable territory, making PQR liable to pay GST on the reimbursement to XYZ.