Import of Service

[Kaustubh Karandikar]

XYZ(India) is paying to Mr. PQR from USA in US$ towards marketing of the products of XYZ in USA. In the books of accounts of XYZ it is shown as salary but TDS under income tax is not deducted on it. Is XYZ required to pay GST under reverse charge?

AI Summary

Debate on GST Applicability for Indian Company Paying US Marketer: Employment vs. Service Contract Analysis XYZ, an Indian company, pays Mr. PQR in the USA for marketing services, recorded as salary without TDS deduction. The forum discusses whether GST is applicable under reverse charge. One opinion suggests no GST is payable if Mr. PQR is an employee, as income accrued outside India is not subject to TDS. Another perspective emphasizes examining the contractual nature-if it's an employment contract, no GST is due; if a service contract, GST may apply. A third viewpoint states that since Mr. PQR acts as an intermediary in the US, the transaction isn't liable to GST under reverse charge.