9911796707
TMI BlogExport of servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Expert, If we raise invoice to our foreign client for providing services and we raise invoice for Export of services on payment of IGST . Suppose the invoice is raised for 100 USD and charged IGST @ 18% i.e., total invoice amount comes to 118 USD. 1. Whether the invoice for 100 USD or 118 USD will be sent to the client? 2. whether we'll receive 118 USD or 100 USD from our client? What ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I understand in this case that we'll receive 100 USD from client and deposit IGST of 18 USD from our own pocket and later on will apply for refund of 18 USD. - Reply By CS SANJAY MALHOTRA - The Reply = 1. GST Invoice is for 118 $ (100 + IGST), whereas Commercial Invoice for Export will be 100 $. 2. Your Customer will pay you 100 $, as taxes and duties are not to be exported. Alternatively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , if you can export under Bond / LUT without payment of IGST. Your understanding as to second point is correct, but that option is workable if you have excess ITC in your E-Ledger. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = I agree with the views expressed by Shri Sanjay Malhotra. - Reply By Ramaswamy S - The Reply = The export can be either on payment of IGST or without payment of IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under bond/ LUT. If you have sufficient balance in the credit ledger, advisable to pay IGST and claim refund which will be in cash. If insufficient balance in ledger, advisable to export under LUT/Bond. Regards S.Ramaswamy - Reply By Archna Gupta - The Reply = Thanks to all for your concern. In my case these queries are related to my earlier invoices issued because that time we had not file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d LUT. Sanjay ji my further query is that my total invoice value is 118 USD as is given in the example which I sent to my client in USA and he makes the full payment of 118 USD. What will I do in that case? Will I have to deposit more IGST by grossing up the amount received or should refund the money extra received? Or we should send the invoice of 100 USD only? Will that be correct? For wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at amount I will file the refund claim? - Reply By CS SANJAY MALHOTRA - The Reply = Archna ji, Please note the below options available: 1 . If the situation remains AS IS i.e. Invoice includes IGST amount and is recovered accordingly from overseas buyer, then the department will not sanction refund as is the case of unjust enrichment. You may have to forego the refund claim. 2 . Alternative ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, do show the break up on GST Invoice as : Service / Professional Charges 100$ + IGST 18$ and on Commercial Invoice as 100$. Refund the excess amount received for 18$ back to party and afterwards submit the claim with department. - Reply By Kishan Barai - The Reply = As you coined about Services in Que. Lets take an example : if you provide consultation services online of 100$, where ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is question arises of 18% GST ?? As you are creator of services there is no question of ITC or LUT/BOND/BG, etc. you raise bill of 100$ receive it via PayPal safely. Question of Refund arraise when you pay GST at the time of sourcing...., else NOT Thank You - Export of services - Query Started By: - Archna Gupta Dated:- 28-11-2017 Goods and Services Tax - GST - Got 6 Replies - GST - Discus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
