Reverse charge mechanism

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This query is : Resolved

ramakrishna kamisetty (Querist)

14 June 2018 Dear sir/Madam,

Whether receipt of Mortgage Call Rate Services from other country attracts Reverse Charge? if Yes Kindly Provide Reference of Sec & Related Rules.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

14 June 2018 Can you please explain what is Mortgage Call Rate Services?
To qualify as import of service to attract liability under RCM, the following conditions has to be satisfied
as per Section 2(11) of IGST Act:
- the supplier shall be located outside India,
- place of supply shall be in India and
- the recipient of such service shall be located in India
To determine the place of supply, we need to be clear about the nature of service.

ramakrishna kamisetty

ramakrishna kamisetty (Querist)

15 June 2018 MCR is a service taken for the purpose of communication between two different countries or distant places, in order to have interrupt free communication. Like we pay for the mobile Bills, we need to pay for the services received and they maintain a database for that.

CA Padmasri Manyam

CA Padmasri Manyam (Expert)

15 June 2018 In case the said services are covered under the ambit of online information and database access
or retrieval services (OIDR), the place of supply is location of the recipient as per Section 13(12) of
IGST Act (i.e. India in the present case).
The definition of OIDR is defined under Section 2(17) of IGST Act.
The location of the supplier is outside India, Place of supply is India, location of the recipient of
service is India. Hence, the transaction qualifies as import of service and attracts tax under RCM.

ramakrishna kamisetty

ramakrishna kamisetty (Querist)

18 June 2018 Thank you Ms.CA Padmasri Manyam

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