GST Implications
This query is : Resolved
Shobhit Jain
(Querist)
11 December 2019
A company is providing Courier service from Hongkong to USA to a client based in USA. Billing for the same is to be done in name of US client and payment will be received in foreign currency.
Whether it will be considered as export of service??
What difference will it make if payment is received in Indian currency, other conditions remain same?
Whether it will be considered as export of service??
What difference will it make if payment is received in Indian currency, other conditions remain same?
CA Anita Bhadra
(Expert)
11 December 2019
In case the company providing courier company is India based company & GST registered in India , sec 13(9) of IGST Act will be applicable for ascertaining place of supply :-
.
As per section 13 of IGST Act - In case location of supplier or location of recipient is outside India:
The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.
FOR COURIER - , the place of supply of services shall be the location of the recipient of services.
Thus , it will be considered as export of services
However , if payment is received in Indian currency , it will not be considered as export of services as the export of service needs to fulfill 5 conditions. One of those conditions is that the payment should receive in convertible foreign currency
.
As per section 13 of IGST Act - In case location of supplier or location of recipient is outside India:
The place of supply of services of transportation of goods, other than by way of mail or courier, shall be the place of destination of such goods.
FOR COURIER - , the place of supply of services shall be the location of the recipient of services.
Thus , it will be considered as export of services
However , if payment is received in Indian currency , it will not be considered as export of services as the export of service needs to fulfill 5 conditions. One of those conditions is that the payment should receive in convertible foreign currency
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
