25 September 2019
Parent / Sister Concern of XYZ is giving a Bank Guarantee of the foreign bank to the foreign customer on behalf of XYZ. This bank guarantee is towards any damage / defects to the product exported by XYZ. The foreign bank is charging certain charges on monthly basis against this bank guarantee to the Parent / Sister Concern of XYZ. The Parent / Sister Concern is paying the same to the foreign bank and recovering from XYZ on monthly basis. Is XYZ required to pay GST on it as import of service?
CAclubindia
