04 June 2019
XYZ(UK) is a parent company of PQR (India). XYZ has developed a software (Blue Box) which is cloud base software. XYZ will give this software to PQR without any charge. PQR will be selling this software in India to customers. PQR would also provide the hardware’s which will be procured from vendors within India and will be supplied to customers. Customer can subscribe the software and use it for pumps operations, maintenance, repairs. 1) Is PQR liable to pay GST on the software procured from XYZ on FOC basis since XYZ & PQR are related? 2) What is the rate of GST for this software?
05 June 2019
1 The GST Act stipulates that the supply without consideration to related persons / distinct persons will still be treated as supply chargeable to GST. 2 90% of the value PQR is selling to it's customers.
CAclubindia
