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export tool cost recovery gst applicality

07 December 2017

Srinivasan K 07 December 2017iif the tool developed by the supplier of components for foreign customer and raise debit note for cost recovery without physical movement and retained for further manufacture of components Gst applicable or not
if no gst under which notification
please advise

Regards
K.Srinivasan

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7 Replies

Akhil Rajeev Reddy (Article Assistant) (121 Points)
Replied 09 December 2017

Whether the same amounts to advance??????

Srinivasan K (6 Points)
Replied 09 December 2017

No advance

Srinivasan (Manager) (26 Points)
Replied 09 December 2017

No advance . Customer issue us the Purchase order.Tool developed by us for further manufacture of components and debit note on foreign customer for tool cost recovery without physical movement. GST applicable or not. If not applicable what is the notification. Please advice. Regards K Srinivasan

VENGETRAO K (Practicing Company Secretary) (41 Points)
Replied 10 December 2017

Supply of goods/service is important creteria of GST and whithout which no GST.Similarly time of supply shall be considered So on completion or further developmeny of tools/component, time will arise to supply. Then GST is applicable for both.

Srinivasan (Manager) (26 Points)
Replied 19 March 2018

Sir,

Since there is no GST Circular or notification for tool cost recovery / development charges from the overseas customer for which there is no physical movement of tool what will be final solution to collect the money from the overseas customer.

Please provide your valuable views.

Regards

K Srinivasan

akhil (CFO) (22 Points)
Replied 07 June 2018

Hello, We are also facing the same problem in our plant.

Have you got any final update on the same

sunil singhal (SR EXECUTIVE ACCOUNTS) (22 Points)
Replied 03 March 2020

Hello Sir

We have received Purchase order of Tooling Charges with GST 18%. so pls give to me suggestion HOW CAN PROVIDE TO CUSTOMER COMMERCIAL INVOICE WITH GST AMOUNT.

due to GST TAX INVOICE ONLY FOR INDIA OR COMMERCIAL INVOICE FOR OVERSEAS CUSTOMER