Subsidy received from Foreign Government

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..... Subsidy received from Foreign Government
Query (Issue) Started By: - Priyesh Mamnani Dated:- 9-4-2021 Last Reply Date:- 8-6-2021 Goods and Services Tax - GST
Got 5 Replies
GST
The company has received subsidy from foreign government, so whether it will be included in value of supply? As per section 15 subsidies from central and state government are excluded while calculating value of .....

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..... supply. Reply By KASTURI SETHI: The Reply: Dear Querist, Pl. mention the nature of supply (in detail) against which you have received from foreign Govt.. Reply By Priyesh Mamnani: The Reply: The company is japanese company providing technical training to young Indian students so that in future they can provide the Jobs to them. The expense of training are reimbursed by Japan Government by gi .....

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..... ving subsidy. There is also an MOU signed between India and Japan for this initiative. So whether GST will be applicable? if yes will subsidy from japan government will be included in value of supply? Reply By Rajagopalan Ranganathan: The Reply: Sir, In m opinion, it is includible in the value of supply because the provision of Section 15 (2) (e) is very clear and specific. Reply By KASTURI S .....

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..... ETHI: The Reply: Dear Querist, Subsidy received from foreign Govt. will be includible in transactional value under section 15(1) of CGST Act inasmuch as such subsidy does not qualify as exclusion clause under section 15(2)(e) of CGST Act. MOU between India and Japan will not help. Also it is added that the above services supplied by the company does not qualify as export of service. Place of su .....

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..... pply is in India as per section 13 (3)(a) of IGST Act. For more clarification go through AAR Maharashtra in respect of Bilcare Ltd. reported as IN RE: M/S. BILCARE LTD. [2019 (7) TMI 43 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA]. Reply By YAGAY andSUN: The Reply: Please also do check whether the Foreign Contribution (Regulation) Act, 2010 will be applicable on such subsidy or not.
Discussi .....

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..... on Forum - Knowledge Sharing .....

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