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RCM on import

29 October 2018

If person take service of foreign company for transportation of goods destination of goods is outside India. Will it attracts RCM as import of service.

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8 Replies

MY Indians Tv (292 Points)
Replied 30 October 2018

services provided by way of transportation of goods from customs station to a place outside india by way of vessel or aircraft is exempted

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Rahul Sureka (152 Points)
Replied 30 October 2018

any reference can u give

MY Indians Tv (292 Points)
Replied 30 October 2018

The Indian Government have issued by their latest notification No. 2/2018- Central Tax (Rate) an amendment stating that the export Ocean Freightwill be exempted from Goods and Services Tax (GST) applicability, effective January 25, 2018 with a “sunset clause” up to "September 30, 2018"

Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 30 October 2018

@ Rahul

Notification 2/2018 CT (r) , further Amended By Notification 14/2018 CT (r)
In S. No. 19A and 19B the sunset clause has been extended to September 30, 2019 for service by way of transportation of goods by an aircraft/ Vessel from customs station of clearance in India to a place outside India.

Rahul Sureka (152 Points)
Replied 30 October 2018

in my case service providers is non resident location out of india, my location in india, origin of goods india, and destination of good out side india. so no RCM since its not a import of service right sir.

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MY Indians Tv (292 Points)
Replied 30 October 2018

In that case services provided by non resident in relation to imports will be intermediary services. place of supply provisions specified place of supply in case of intermediary services is "Location of supplier". In this case outside india, both the location of supplier and place of supplier outside india so no gst will be leviable

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Rahul Sureka (152 Points)
Replied 30 October 2018

place or supply for service in relation to transportation of goods out side india is destination of good with that logic, my services provider is out of India and places of service is out side india so no RCM. right

MY Indians Tv (292 Points)
Replied 30 October 2018

The foreign agent, who facilitates the supply of goods, is included within the definition of intermediary. The place of supply of service for services provided by intermediary would be the location of service provider, i.e. the place where he is registered. Since a foreign agent is located outside India and not registered in India, the commission paid to him will not be taxable.