Jayanta Bandyopadhyay (310 Points)
27 June 2022
We are placing service PO from our Mumbai office for technician visit to Odisha plant. Since there will be Taxation and credit issue, should Italy based service provider raise Invoice on Odisha service recipient plant or PO issuing office at Mumbai. However, forex payment will be made from Kolkata. Kindly guide.
CA. ANKIT PANDYA
(CA)
(682 Points)
Replied 29 June 2022
As far as Income tax is concerned, as per my understanding I don't think there is any problem if invoice is raised on any of your locations.
since it will be import of service, GST RCM may be applicable (depending upon the fact of the case), so ITC on such RCM paid will be available for Odisha plant as services are performed their. So better to take invoice in Odisha name
Also check with your bank arrangements, if they are ok with releasing the foreign exchange from Kolkata for invoice of Odisha.
CAclubindia
