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import of services

07 September 2018

when we are importing services then whether rcm is to be paid on converted invoice value or amount inclusive of foreign exchange

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2 Replies

Rohit Tibrewal (Student & Senior Accountant) (3193 Points)
Replied 07 September 2018

The GST framework specifically clarifies that in such cases, any amount payable by the supplier, but which is incurred by the recipient and not included in the actual consideration for services, will be included while computing the total transaction value.

Therefore, in case of RCM, the recipient has to pay GST on the net transaction value, that is, the consideration amount plus tax paid on behalf of the supplier.
Converted Invoice value + Direct Tax which you have paid against the same on behalf of Supplier of service.