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Supply of Service by an Indian Consultant to its Foreign Principal whose customers who are located in India.

July 3, 2017

Question. Our valuable client is a professional services engineer based in India. He provides professional services to a company based outside India. But the services are provided mostly within India to the clients of the foreign company present in India. The foreign company has a representative office at Bangalore ( not a registered office). The office is taken on rent by the foreign company and just serves the address of communication for its Indian clients. Our client gets a monthly remuneration by way of professional fees based on the invoice raised by him in India in INR. The foreign company credits our client’s bank account every month with the professional fee amount  which is converted by our client’s bank in India currency. Additionally our client also provides professional services to other Asia Pacific nations on behalf of the same foreign company.

Will this be considered as export of services by our Indian client and will he able to claim the benefit of “Zero rated supply” under the present GST regime? 

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1. A person is an Indian agent for a Foreign Principle company.
2. Foreign company is selling goods to Indian Companies whom the agent proposes.
3. The goods are purchased by Indian compnies in USD/EURO.

4. I am getting agent commission on the invoice made for indian company from the foreign company on foreign currency basis and it is remitted through a Foreign Inward Remittance Certificate (FIRC) method.

Will it attract GST. if so what is the %.

Thanks and Regards,

dipak mehta
cell : 9820098712

My query is same as that of Mr Ram at point 8 above . Kindly advise

TKS n rgds

Dipak mehta

Overseas education consultant

No money charged here students pay fees we get re imbursed for it in foriegn exchange even the education is provided abroad do we come under gst

Hi,

I have been approached by foreign company who doesnt have office in India, company is into Media & Entertainment space. Can you please suggest what would be the best way they remit my salary. And how much tax I have to pay. Below are the two options that they have suggested.

1) They do agreement with me as consultant and pay me directly, can you please let me know if that is legally allowed and tax implication.
2) They do agreement with local agency and hire them as vendor, and my salary is routed through them, i would be on pay roll of local agency.

Please let me know what would be the best way to go ahead.

Thanks
YB

Export of services Exempted?
Hi,

I qualify under export of services, am I exempt as per the new list?

I have been filing zero returns as I was initially under zero rated supply.

Thanks

Hi Lipsa,

My firm has taken some online repair activity consultation/training of a instruments from an engineer of our foreign manufacturer based outside India.
Now we want to transfer the money their fees for that, can you advise under which head it should be booked or what should be specified on the invoice?
Is there any taxes/TDS implication if any???

Thanks in advance

Hello Lipsa,

Further to the question raised by Sunith Sir, I wanted to clarify with you, on the following:

i) supplier of service is located in India; - I am PROVIDING CONSULTATION SERVICES AND BASED IN INDIA.

ii) recipient of service is located outside India; - My Client is based in UK.

iii) place of supply of service is outside India; - I guess, I am providing service to client who is outside India. I know the address.

iv) payment for such service is received by supplier of service in
convertible foreign exchange; - I guess they send in £, however when I receive the same in my bank account it is in INR.

v) supplier of service & recipient of service are not merely establishments
of a distinct person - PRINCIPAL IS A COMPANY AND SELF AS AN INDIVIDUAL (sole proprietor).

All these conditions should be fulfilled for a service to qualify as ‘export’. - DO I FULFIL THE DEMAND FOR EXPORT OF SERVICE?

Kindly advise whether self will be entitled to pay for GST? Shall I have to file Zero Return GST?

Hi

We are company who is providing IT platform to Doctors/Hospitals for online consultancy through video conferencing to international patients (basically a market place where a international patients can see doctor profile and book an appointment with us). Money will be received through foreign convertible currency to us and we will be pay to Hospitals/Doctors after deducting our share. If we raise invoice to the customers can it will deemed as export of service. Please suggest.

Thanks

Similar query as MRS . Please help

Dear LIPSA SATPATHY,

1. A person is an Indian agent for a Foreign Principle company.
2. Foreign company is selling goods to Indian Companies whom the agent proposes.
3. The goods are purchased by Indian compnies in USD/EURO.

4. I am getting agent commission on the invoice made for indian company from the foreign company on foreign currency basis and it is remitted through a Foreign Inward Remittance Certificate (FIRC) method.

Will it attract GST. if so what is the %.

Regards,
Raam.



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