T Srinivas Rao (Business Manager) (25 Points)
24 September 2024Hi, A Software Development company and got a sub contract from an Indian Company, where we have to complete the project out side Inidia. Our Payment is done in INR from the Indian Company. Can we show the Services rendered as deemed export and pay only 0.1% GST.
Kindly let us knw the laws applicable in this case.
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8462 Points)
Replied 24 September 2024
Rama chary Rachakonda
(Master in Accounts & high court Advocate)
(8462 Points)
Replied 24 September 2024
T Srinivas Rao
(Business Manager)
(25 Points)
Replied 24 September 2024
Dear Sir,
Thank you very much for your reply. My question was I am taking a sub contract from and Indian Company, they will make the payment in INR only. We will have to send our employees out side India and complete the work. This work has to be done on site only.
We have all VISA and Airtickets of the people who will be working under this project. So are we eligible as deemed export and pay "0%" GST or "0.1%" GST.
Kindly clarify
Khushbu Bansal
(student)
(48 Points)
Replied 28 September 2024
Since your company is rendering services outside India but receiving payment from an Indian company in INR:
You would not be eligible for the 0.1% GST rate, as that is only available for deemed exports of goods under specific conditions.
Standard GST at 18%: Likely applicable unless payment terms or RBI permission suggest otherwise.
T Srinivas Rao
(Business Manager)
(25 Points)
Replied 28 September 2024
Dear Sir
We thank you very much for the clarification provided by you.
Regards
CAclubindia
