Is RCM applicable on foreign services?

On which service is RCM applicable?


Sl. No. Provider of service Percentage of service tax payable by service provider
1 Any person who is located in a nontaxable territory Nil
2 Goods Transport Agency (GTA) Nil
3 An individual advocate or firm of advocates Nil
4 An arbitral tribunal Nil

Is GST applicable on services received from foreign company?

As per the IGST law, import of services under GST applies when the trade occurs in inter-state. It also applies when the consumer receives the services from a person residing outside India.

Is RCM applicable on import of service?

The importer of services will have to pay tax on reverse charge basis. However, in respect of import of online information and database access or retrieval services (OIDAR) by unregistered, non-taxable recipients, the supplier located outside India shall be responsible for payment of taxes (IGST).

Is GST applicable on foreign consultancy charges?

It will be considered as a zero-rated supply i.e export of services. GST will not be levied on export of any kind of goods or services. … It will be classified as export of services provided the payment is received in foreign currency. If you’re registered under GST, apply for LUT and Export without payment of GST.

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What is RCM applicable?

Reverse Charge Mechanism. in GST. Generally, the supplier of goods or services is liable to pay GST. However, in specified cases like imports and other notified supplies, the liability may be cast on the recipient under the reverse charge mechanism.

Is RCM applicable on govt fees?

Answer: Yes, reverse charge is applicable in respect of services provided by Government or local authorities to any person whose turnover exceeds Rs. … Thus, the recipient of supply of goods or services is liable to pay the entire amount of tax involved in such supply of services or goods or both.

Is there any GST on import of services?

As a basic principle, GST law says that all supplies of goods & services made as imports into India will be treated as an inter-state supply. All inter-state supplies attract IGST. So import of goods and services into India will attract IGST. … IGST on import of services will be covered under the IGST Act.

How many countries have implemented GST bill?

Since then, more than 140 countries have implemented GST with some countries having Dual-GST (e.g. Brazil, Canada etc. model.

Is RCM applicable on unregistered transporter?

Reverse Charge if the GTA Is Unregistered

However, the Government has cancelled the notification and hence, RCM applies on unregistered purchases for only a specified list of supplies, which is yet to be notified.

Is RCM applicable for unregistered vendor?

Reverse Charge Mechanism (in case of supplies made by unregistered persons to registered persons) will apply, starting from 1st Feb 2019, only on specified goods/services and specified persons. The list of persons or items subject to the provisions is yet to be notified.

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Which tax is not merged with GST?

-Entry Taxes and toll: State levies road tax, toll tax and environmental tax and it has not been brought under GST.