Export of service, Goods and Services Tax - GST

[Kaustubh Karandikar]

XYZ (India) is receiving ‘Technical Consultancy services’ from a person outside India. GST under reverse charge is paid on it by XYZ. Subsequently, XYZ is recovering the amount paid towards consultancy from their parent company outside India. Is XYZ required to pay GST on the amount recovered from parent company?

Posts / Replies

[Padmanathan Kollengode]

If the transaction is merely a reimbursement/ transfer of fund between parent company and subsidiary company, then it will not be liable to GST.

[Shilpi Jain]

Further details would be required regarding this transaction to comment for the amount received from parent company.

Why is it reimbursed.