Import of Service

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Import of Service
Query (Issue) Started By: - Kaustubh Karandikar Dated:- 27-4-2023 Last Reply Date:- 2-5-2023 Goods and Services Tax - GST
Got 4 Replies
GST
XYZ(India) is paying to Mr. PQR from USA in US$ towards marketing of the products of XYZ in USA. In the books of accounts of XYZ it is shown as salary but TDS under income tax is not deducted on it. Is XYZ required to pay GST und .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... er reverse charge? Reply By Amit Agrawal: The Reply: If Mr. PQR is an employee of XYZ(India) and doing the marketing in USA in course of his employment, then, no GST is payable under RCM by XYZ(India). W.r.t. non-deduction of TDS, while I am not an expert in Income Tax Laws, I have seen multiple CA certificates which - in general terms - certifies that 'no tds is required on salary so paid .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... when such income has accrued / outside India for the employee'. These are ex facie views of mine and the same should not be construed as professional advice / suggestion. Reply By Amit Agrawal: The Reply: * ........ accrued / arised outside India .... Reply By Padmanathan Kollengode: The Reply: The deduction/ non-deduction of TDS under Income Tax Act or even accounting in books of accoun .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t cannot solely determine the taxability under GST. The true nature of transaction has to be examined based on the contractual agreement between Mr.PQR and XYZ (India) i.e. whether it is "contract of service" or "contract for service". If the relationship between Mr.PQR and XYZ (India) is that of master-servant ( ie. by applying test of control), then it is a "contract o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... f service" or an employment contract and hence, covered under Sch III to the CGST Act. No GST. If there contractual agreement is between a business and a self-employed individual (principal to principal basis) and no master-servant relation exists, then it is "contract for service" and becomes import of service liable to RCM. Reply By Shilpi Jain: The Reply: PQR is an intermediar .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... y in the US for the Indian company. PoS would be US and this transaction would not be liable to GST under RCM as the situs of service is outside India.
Discussion Forum - Knowledge Sharing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X