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RCM ON IMPORT OF SERVICES

All QuestionsCategory: GSTRCM ON IMPORT OF SERVICES
Hemant Parmar asked 3 weeks ago

DEAR SIR / MAM
WE ARE EXPORTING GOODS OUTSIDE INDIA.
FOR THIS WE ARE RECEIVING THE COMMISSION AGENT SERVICE FROM OUTSIDE INDIA.
AGENT RAISE THE COMMISSION BILL TO US IN USD & WE PAY DIRECTLY TO HIM.
IS THERE RCM ON IMPORT OF SERVICE APPLICABLE ??
THANKS & REGARDS
HEMANT PARMAR

3 Answers
Profile photo of CA shafaly girdharwalCA shafaly girdharwal Staff answered 3 weeks ago

Yes prima facie it appears to be import of services so RCM will be applicable

Profile photo of DEEPAK BHOLUSARIADEEPAK BHOLUSARIA Staff answered 2 weeks ago

I have a difference of opinion in this particular case. In case of intermediary services, Place of Supply is always place of supplier. So in this case, supplier is out of India and thus POS is also out of India. Since both LoS and PoS is outside India, there is no Import of Services, hence no RCM. Same position existed under service tax regime. 

Profile photo of DEEPAK BHOLUSARIADEEPAK BHOLUSARIA Staff answered 2 weeks ago

My above answer is based on section 13(8)(b) of IGST Act, 2017