NR GST NUMBER
This query is : Resolved
06 November 2024
Our company receives bills from outside India in foreign currency where NR mentions their GSTN No. 9924USA29014OSF/9920AUS29601OSG, GST portal showing status active but vendors not charging any GST amount.
Is this as per the GST act? Should we need to charge RCM for these services?
Does this vendor have Indian subsidy or registration in India?
if TDS needs to deduct on them how we collect their PAN number.
Is this as per the GST act? Should we need to charge RCM for these services?
Does this vendor have Indian subsidy or registration in India?
if TDS needs to deduct on them how we collect their PAN number.
06 November 2024
The GSTN numbers mentioned (9924USA29014OSF and 9920AUS29601OSG) seem to be in an incorrect format. Verify the vendor's GSTIN with the GST portal to confirm its validity in India.
Vendor may not have any subsidiary in India.
RCM under GST and TDS under IT act, depends upon nature of service received, if at all received in India.
Vendor may not have any subsidiary in India.
RCM under GST and TDS under IT act, depends upon nature of service received, if at all received in India.
06 November 2024
with due respect 9924USA29014OSF and 9920AUS29601OSG relates to MIDJOURNEY INC and Envato Elements Pty Ltd. respectively (NR on GST portal) their effective date of registration are 23/02/24 and 08/12/20 respectively (as per GST PORTAL)
06 November 2024
If the vendors are not charging GST, it's essential to determine whether the services provided are taxable in India. Under GST, services provided by a non-resident (outside India) to a recipient in India are taxable in India, unless specifically exempted or covered under the reverse charge mechanism.
RCM applies when:
The supplier is a non-resident
The recipient is a registered person in India
The services provided are not exempt or covered under specific notifications
If RCM applies, your company would be liable to pay GST on the reverse charge basis.
TDS is applicable on certain payments made to non-residents, as per the Income-tax Act, 1961.
To deduct TDS, you would need the vendor's PAN number. However, non-residents can apply for a PAN number in India.
Determine the nature of services provided and whether they're taxable in India.
RCM applies when:
The supplier is a non-resident
The recipient is a registered person in India
The services provided are not exempt or covered under specific notifications
If RCM applies, your company would be liable to pay GST on the reverse charge basis.
TDS is applicable on certain payments made to non-residents, as per the Income-tax Act, 1961.
To deduct TDS, you would need the vendor's PAN number. However, non-residents can apply for a PAN number in India.
Determine the nature of services provided and whether they're taxable in India.
07 November 2024
thank you so much for your response.
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07 November 2024
You are welcome.
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