Royalty Paid to Foreign company/Partner Company
This query is : Resolved
31 December 2024
We are a manufacturing company based in Mumbai and pay a percentage of our total sales as royalty to our partner company located in Germany. Could you clarify the taxability in this scenario? Are we required to pay GST on the royalty under the reverse charge mechanism or the forward charge mechanism? Additionally, please share any relevant case laws or guidelines.
Thank You in Advance.
Thank You in Advance.
01 January 2025
RCM applicable.
See the link.
https://gstdoctor.com/articles/rcm-on-royalty-paid-to-foreign-company-l1megfsq?srsltid=AfmBOoolHMktPOTLxB6OUq-7QoXWp7RKskCDuAqL1yMi1WfNZsqT_yPc
See the link.
https://gstdoctor.com/articles/rcm-on-royalty-paid-to-foreign-company-l1megfsq?srsltid=AfmBOoolHMktPOTLxB6OUq-7QoXWp7RKskCDuAqL1yMi1WfNZsqT_yPc
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