MANPOWER SERVICE TO FOREIGN CLIENT

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If you're supplying manpower from India to foreign companies, where the appointed person works abroad under the foreign client's direction, you need to clarify GST implications. While you manage interviews and receive payment in foreign currency, the key question is whether this constitutes an export or is subject to GST. The location of the service recipient (outside India) is a crucial factor in determining taxability, especially when considering intermediary services.

Tushar Kalid

Tushar Kalid (Querist)
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08 November 2024 I am providing manpower from India to Foreign companies. The appointed person will work under foreign company and in their country. My role is to taking interviews and managing interviews of suitable candidates with foreign clients. Payment of bills will be received foreign currency. Can I treat it as Export or is it taxable under GST?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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08 November 2024 Being recruiting agent, your services (POS) are within India, so GST will be applicable.

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CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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09 November 2024 IMO,

POS will be determined by Sec 13 and it falls under general provision of Sec 13(2) so should be location of service recipient i.e. outside India

Also it should not fall under intermediary services as he is not appointed a agent between two persons, as he is providing this service in normal course of business on princple to pirincple basis. As only one party to contract is know another party is not acertainable to facilitate the supply of service/goods

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