TaxTMI 
TaxTMI 
Import of Service
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....mport of Service<br> Query (Issue) Started By: - Kaustubh Karandikar Dated:- 25-9-2019 Last Reply Date:- 26-9-2019 Goods and Services Tax - GST<br>Got 2 Replies<br>GST<br>Parent / Sister Concern of XY....
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....Z is giving a Bank Guarantee of the foreign bank to the foreign customer on behalf of XYZ. This bank guarantee is towards any damage / defects to the product exported by XYZ. The foreign bank is charg....
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....ing certain charges on monthly basis against this bank guarantee to the Parent / Sister Concern of XYZ. The Parent / Sister Concern is paying the same to the foreign bank and recovering from XYZ on mo....
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....nthly basis. Is XYZ required to pay GST on it as import of service? Reply By Shilpi Jain: The Reply: It would be an import of service by the parent/sister concern of XYZ. ITC can be availed of this ....
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....and charged back to XYZ who can then claim refund Reply By Rajagopalan Ranganathan: The Reply: Sir, A foreign bank providing service from outside India cannot be 'banking company' according....
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.... to Section 45 A of Reserve Bank of India Act, 1934. hence general provision of place of supply of service will apply, that is, location of recipient of service will be place of supply. Therefore XYZ ....
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....receives the service through parent/ sister concern of XYZ XYZ is liable to pay gst under RCM and XYZ can take ITC of the same.<br> Discussion Forum - Knowledge Sharing ....