I export software services to the US, and get paid with bank transfer in USD to our account.
I do not purchase anything in the process, so pay no GST tax on supplies and don't claim back any input credit.
When I export the software and prepare the export invoice for the buyer in U.S. do I specify the "Taxable Rate" as 0% since exports are tax free?
Or do I have to pay 18% tax out of my pocket and then claim back the amount later?
Thank you for your help.
How can I issue them an invoice for more than they pay. If they pay 1,00,000 Rs., then I have to issue them an invoice for 1,18,000 Rs with the 18% GST (and pay the tax myself)? How would their accounts balance with invoices not matching what they pay? Seems confusing to me.
Also the FIRC would only be for 1 lakh, so I will not be able to show that I received 1,18,000 which the invoice would show. So my accounts would also not match.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
