RCM payable on Service received related research & Development with Foreign company having Joint venture with the foreign company.

[Loknath Prasad]

RCM payable on Service received by Indian company related to research & development with foreign company having Joint venture with the foreign company.

AI Summary

Research Services from Foreign JV Partner Trigger Reverse Charge Mechanism Under GST Rules for Indian Companies An Indian company receiving research and development services from a foreign company with a joint venture relationship must apply Reverse Charge Mechanism (RCM) for GST payment. RCM is triggered by import of services where the Indian recipient pays GST instead of the foreign supplier, governed by specific sections of CGST and IGST Acts and relevant notifications, regardless of joint venture status.