Question ID :
38206
525746
Would like to discuss a case study on Place of Supply provision and Taxation on Telecommunication Services provided to overseas customer.
Let suppose ABC Pvt Ltd (India) registered under GST, providing services on Voice over Internet service to customer located in US of Rs 100,000/- talk time having minutes whose call will be made by a authorised person of US M/s Rattan solution Pvt. Ltd. in India to US customer/target audience & US number will be display to US audience. Also, Call will be made from US switch which is belonging to third party. ABC Pvt Ltd has procured from India supplier at Rs 80,000/- without GST.
Looking :
1. What shall be place of supply where bill is done to US Company and their taxation on which value and consideration will be in INR.
2. What will be case where billing to authorised person of US located in India (Rattan Solution Pvt Ltd.) and payment will be made in INR.
3. If taxable then, value can be take Net basis (Rs 100,000/- minus Rs 80,000/-) Rs 20,000/- as No Input tax credit paid on purchase as not registered.
Posted by
Pankaj Kumar Sharma
on
Jun 14, 2019
Filed Under
GST
since the US co. has a resident office in india and as the bill will be settled in INR, it will not be treated as an export of service. will be liable to GST in India.
Posted by
CA. VENKITARAMAN K V on
Jun 14, 2019