We are an IT industry. To fulfill, our business activities, we need to take OIDAR (Online Information Database Access and Data Retrieval Services) from the service providers like Linkedin,Google, Paypro etc. These service providers are GST registered in India as Non Residents and filing GSTR-5A.
At present we have made different user accounts in the name of our employees and the service providers issue the invoice in INR in the name of the user (i.e.our employee) with charging IGST in the invoice on FCM basis. Our employees present these invoices to us and we reimburse the invoice amount along with GST.
Now my question is that ultimately, we (the company) are using these services, hence we are the recipient of services, thats why, we have to pay the GST on RCM basis, but the problem is that as the invoices are in the name of the individuals, hence the service provider is charging the GST on FCM basis and ultimately we are reimbursing this GST amount to our employees (indirectly we are paying the GST to the Government). Now how can we pay two time GST (first through reimbursement of invoices and thereafter on RCM basis due to registered in GST as recipient of service.
Please guide. Thanks in advance
I want to know that as we are the registered person in India hence we have to pay GST on RCM too, as we are already paying the GST (through reimburse to our employees) and if yes then whether there would not be double taxation of GST.
CAclubindia
