Upgrade and Save: Get 10% OFF on CAclubindia Pro Subscription! Use Code: SAVE10 Subscribe Now!

RCM on import service

nayab (Sr.Officer Accounts ) (250 Points)

27 February 2019

Dear Team.
1.we are import the IT service from. Korea..
if any RCM applicable or not ?

Reply
Follow
Share

5 Replies

Siva Shankar Reddy K (Associate Chartered Accountant Indirect Taxes ) (51 Points)
Replied 27 February 2019

Dear Sir,

RCM applicable as per section 5(3) of IGST act read with Schedule -1

Upgrade to CAclubindia Pro. Subscribe Now!

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

nayab (Sr.Officer Accounts ) (250 Points)
Replied 27 February 2019

for businesses...

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