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Gst and tds

unknown (B.Com) (87 Points)

05 July 2019

a person has paid a sum of rs 5000 per month to a company located outside india to access there software online.

the main question related are

whether he has to pay gst on rcm?

whether he is also liable to deduct tds on the same?

thank you

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2 Replies

pradeep goyal (Senior Partner) (7561 Points)
Replied 05 July 2019

if the person is registered in India, yes need to pay IGST under RCM & if unregistered individual than supplier situated out of india need to pay tax under forward charge (Need to take registration in banglore) . supplier must be asking recipient's GST number at time of transaction. if person give GST number, supplier will not charge & if keep blank, supplier will charge, check invoice. as far as income tax TDS concerned, you need to check DTAA of India with respective country of supplier & also income tax section 9. if supplier have any office or business connection in india, apparently payer need to deduct withholding tax while filing 15CA & 15CB.