1) If Singapore company issues reimbursement invoice to India company as per Joint venture project. 2) Will India company be liable to deduct WHT on reimbursable invoice? 3) Will India Company be liable to deposit RCM on reimbursable invoice?
please confirm, give the answer with notification.
14 July 2022
No WHT and RCM applicable in case of joint venture project carried out outside India. Park the funds outside India and make the payment from it.
My question is, if the Singapore company invoiced the Indian company with proof of payment as "reimbursable invoice" which we both are working on in the same project, as a joint venture project. Can we liable to deduct WHT and RCM on that invoice ?
18 July 2022
our India company and Singapore company is working as joint venture project at African country, but our client will pay 100% on India company, we will reimburse the Singapore company, that why we are asking, Singapore company raise reimbursable invoice with supporting documemts.
18 July 2022
Best option is park the funds outside India and make payment from there RBI allowed it. In case of payment from India no witholding tax and RCM applicable as it's payment for work done outside India.
19 July 2022
Singapore company is non resident no tax payable by the company in India for the income earned for the services rendered outside India. GST also not applicable on service rendered outside India.
We explain, in continually previous question, if our Singapore company raised reimbursement invoice to our India company, then we are not liable to deduct WHT and RCM, if they add 10% overhead exp on reimbursement amount in the same bill, then our india company is liable to deduct WHT and RCM?
CAclubindia
