TaxTMI 
TaxTMI 
As per FA'2016, clause (b) of Sec. 13(8) of the IGST Act was deleted. Now, the place of supply of services, in case of an overseas agent's services, will be the location of the recipient. Given the fact that as per the terms of the contract, commission will be due and payable to agent once the customer remits the payment. The question is, in such a case, when the time of supply will trigger, particularly when no payment is made, or no self-tax invoice is issued, but an accounting entry is passed at the year-end in the books for providing the liability. The liability is booked in bill payable account and will be transferred to the agent account once payment is received.
Reverse charge liability in case of overseas agent services
03 Apr 2026 
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Reverse charge liability for overseas agent services depends on import of services rules and time of supply triggers.
Post-omission of clause (b) of section 13(8) of the IGST Act, overseas agent or intermediary services take the recipient's location as the place of supply and are treated as import of services subject to section 2(11). Time of supply under section 13(3) is the earlier of payment, including a book entry reflecting payment, or sixty days after the supplier's invoice. A year-end provision alone does not constitute payment or crystallise liability, so reverse charge liability is not triggered merely by booking the provision. (AI Summary)
Post-omission of clause (b) of section 13(8) of the IGST Act, overseas agent or intermediary services take the recipient's location as the place of supply and are treated as import of services subject to section 2(11). Time of supply under section 13(3) is the earlier of payment, including a book entry reflecting payment, or sixty days after the supplier's invoice. A year-end provision alone does not constitute payment or crystallise liability, so reverse charge liability is not triggered merely by booking the provision. (AI Summary)