TMI BlogDoubt on GST on income on Service to Foreign companyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Expert, I am a small proprietorship firm and my job is to supply services to my client based out in USA. My work nature of work is recruitment and I supply service by recruiting candidate for my client in USA. the candidates are in USA and the job requirements also in USA. I have a small team here and the entire income spend on my employees salary, and other office expenses. So my doubt: is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there any GST on consulting fees which I am receiving from my client in USA? - Reply By KASTURI SETHI - The Reply = GST is consumption based tax. Service is being enjoyed in non-taxable territory. It falls under the category of 'Manpower Supply'. No question of ''Intermediary Services'. It is export of service. Hence GST is not leviable. - Reply By VAMSI KRISHNA - The Repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y = Respected KASTURI SETHI sir, in aforesaid reply, you have mentioned that if, the service involved in this issue is export of service hence GST is not leviable. am here inviting your attention, as per my knowledge and understanding of law, even if export of goods or service levy of tax would be attracted under section 5 of IGST . but section 16 of IGST gives two options to condu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct the business (1. without payment of tax,, 2. with payment of tax). Dear querist, in your case, your transaction will be treated as 'inter state supply', so GST will be levied as per sec 5 of IGST. am here directing you to check whether it is qualify as 'export of service', if it qulaified as export of serive then it will be treated as 'Zero rated suppl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y' as per sec 16 of IGST . if it is zero rated, follow either of options given in same section. dear experts am looking forward to your earliest response in this regard. Thanks. - Reply By KASTURI SETHI - The Reply = Sh.Vamsi Krishna Ji,. Actually I was emphasising that it is export of service. There is no doubt that export of goods or servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces is inter-State supply. Procedure detailed by you is correct. I should have mentioned and emphasised on zero rated supply instead of writing, GST not applicable. . - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = I endorse the views of Shri Vamshi Krishna - Reply By Ganeshan Kalyani - The Reply = It is an export of service and for export of service there is two option. Export with pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of GST and claim refund of the tax paid. Or export without payment of GST against LUT. - Doubt on GST on income on Service to Foreign company - Query Started By: - Kailash Sahoo Dated:- 27-10-2018 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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