Hi guys.!!
ex works charges paid by overseas agent in foreign currency on or behalf of Freight Forwarder (May be shipper / supplier) to airlines company in the case of export. after that overseas agent billed to Freight forwarder. my query is whether Freight Forwarder or shipper is liable to pay GST on payment to overseas agent under Reverse charge...!!??
Early revert is highly appreciated...!!
Thanks & Regards
CA Abhishek
I understand that ex-works charges have been paid in respect of services consumed in India. The agent based abroad has arranged freight and paid for the services like freight. It seems that the shipper has agreed to pay for the freight charges to such agent. The place of supply is India. Therefore, reverse charge machanism would be applicable since GTA services have been supplied and utilized in the supply chain. The recipient i.e. shipper should pay applicable GST.
CAclubindia
