13 June 2023
An India Company provides professional services to USA based co. in USD, the POS is in India (Remotely) no physical Establishment in India of the recipient.
how should it be transacted- 1) Export of Services under LUT without payment of taxes - in the absence of registered establishment of recipient in India. or 2) Export of Services - under IGST in USD.
13 June 2023
Thank you Sir.. some one suggested to Charge IGST according to Section 2(5) of IGST, export of goods.. can you please confirm on the said?
13 June 2023
Section 2(6): Export of Services “Export of Services” means the supply of any service when,- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8. [Refer Note 1(a)]
here the US based company does not have its registered place of business, services are provided remotely, which does not qualify the 3rd point as place of supply as per the aforesaid section
please clarify the client is saying - they were suggested to charge IGST (in USD) as the POS is India but does not have the registered office in India
CAclubindia
