Dear Team.
1.we are import the IT service from. Korea..
if any RCM applicable or not ?
Dear Sir,
RCM applicable as per section 5(3) of IGST act read with Schedule -1
5 Replies
Siva Shankar Reddy K
(Associate Chartered Accountant Indirect Taxes )
(51 Points)
Replied 27 February 2019
Mohit Jagnani
(Professional - CA firm)
(524 Points)
Replied 27 February 2019
Schedule 1 speak about transactions without consideration so it should not be referred, however tax under RCM is to be paid.
HAPPY TO HELP
MOHIT JAGNANI
8820448170
HAPPY TO HELP
MOHIT JAGNANI
8820448170
Mohit Jagnani
(Professional - CA firm)
(524 Points)
Replied 01 March 2019
Hi,
Your understanding is not correct as section 7 of CGST says - "import of services for a consideration whether or not in the course or furtherance of business"
So there must be a consideration
Further sch 1 says transaction is taxable without consideration if "Import of services by a taxable person from a related person or from any of his other establishments outside India, in the course or furtherance of business"
So if there is no consideration then the foreign entity must be related.
HAPPY TO HELP
MOHIT JAGNANI
8820448170
Siva Shankar Reddy K
(Associate Chartered Accountant Indirect Taxes )
(51 Points)
Replied 01 March 2019
@ Mohit Jagnani
You are right.
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