A event management company is in india who organise events outside india whoes client is outsiders ( Foreigners) should we pay GST on these transaction and categorised in zero rated supply or not. what type of documents we require.
17 January 2019
Sir, if the payment is received in convertible foreign exchange, then it is a zero rated supply and u can make such supply either under LUT or Bond without payment of tax and take refund of unutilised ITC on goods and services or make such supply on payment of tax by utilizing input tax credit and take refund of the tax so paid. Thanks and regards CA Shubham Sharma Contact no-9462302922 email-shubham.vnv@gmail.com
18 January 2019
According to section 2(6) of IGST Act, services are qualified as exported only if the following conditions are satisfied: (i) the supplier of service is located in India; - Safisfied (ii) the recipient of service is located outside India; - Satisfied (iii) the place of supply of service is outside India; - Satisfied (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and - Not safisfied (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8; - No information
Since all the above conditions are not satisfied, the services are not considered as zero rated supplies.
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