TaxTMI 
TaxTMI 
TaxTMI 
Reverse Charge applicability on services rendered outside India
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....everse Charge applicability on services rendered outside India <br> Query (Issue) Started By: - UmeshBabu J Dated:- 14-7-2025 Goods and Services Tax - GST <br> Got 4 Replies <br> GST<br> <br> Hi, An Indian company appoints a company in UK for marketing its products in UK and US. A Fixed Fees is paid monthly to UK company. Whether service rendered by UK company attracts RCM? Thanks --Reply By....
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....: YAGAY andSUN The Reply: Yes, the service rendered by the UK company to the Indian company does attract Reverse Charge Mechanism (RCM) under the GST law. Here is a precise legal analysis: The Indian company is receiving marketing services, which are classified as "intermediary services" or "business support services", depending on the exact terms. Since the supplier (UK company) is located out....
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....side India and the recipient (Indian company) is in India, this is an import of service under Section 2(11) of the IGST Act, 2017. According to Section 5(3) of the IGST Act read with Notification No. 10/2017 - IGST (Rate) dated 28.06.2017, in cases of import of services, the recipient located in India is liable to pay IGST under Reverse Charge Mechanism. Furthermore, as per Section 13(2) of the IG....
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....ST Act, the place of supply of services (in general cases) is the location of the recipient (i.e., India). Therefore, this service qualifies as import of service, even if the marketing is done outside India, and is thus subject to RCM. In conclusion, the monthly fixed fee paid to the UK company is liable to GST under RCM, and the Indian recipient is required to discharge the tax liability accordin....
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....gly. --Reply By: Shilpi Jain The Reply: It is not an intermediary services. Will be liable under RCM as import of services. --Reply By: deepak gulati The Reply: In my view also No RCM being Intermidiatry services and place of supply out of India. --Reply By: Guuruswamy Raman The Reply: If fixed fees for marketing services GST payable under RCM. If sales commission paid against specific ....
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....sales the agent become intermediary and place of supply outside India GST Under RCM not payable . <br>***<br> Discussion Forum - Knowledge Sharing....