22 February 2019
Dear folks, one of my client is going to provide cleaning service of machinery out of India and for that service he is going to take machinery and labour from India. Service provided is for more than 2 years. After completion of service he will brought back the machinery. He is going to get rent for the machinery brought. 1.my question is whether he is required to charge gst on rent received for machinery or not. 2. whether the gst treatment will different if he sold at machinery after the completion of work in that country.
Please Experts give your detailed reasons for the above
27 February 2019
As the service recipient is outside India, and place of supply of service is outside India- it shall be export of services and GST shall not be required to be paid. Export benefits shall be available. As machinery shall be taken out of India, custom procedures are required to be followed. Further when such machinery shall be imported again in India after work is over, it shall attract custom duty- unless the procedure prescribed for export of goods for re-import. Similarly in the other country, you shall need to import the goods and again re-export; so you need clarity on custom procedures there.
CAclubindia
