Foreign company transactions

Rate / HSN codes 140 views 2 replies

Parthesh

Assistant Manager

37 Points Joined February 2013

Dear Sir/Mam,

There is a company in china which has its customers in India. The chinese company wants us to deliver the product to its Indian Customer and bill to Chinese company. For this transaction I have following questions.

1. Whether GST will be applicable on this transaction ?

2. Whether Chinese company is required to have GST registration in INDIA ?

3. Whether this transaction can be termed as Export transaction and export benefits can be claimed on the same ?

4. Whether Chinese company can place an order in USD and pay in USD ?

Thanks for the reply in advance

Replies (2)

Shivam Chomal

498 Points Joined June 2017

It will mainly depend upon the careful analysis of contract entered into between both the parties. But answering your question as per the fact you have put, you are representing the said Chinese Company in the territory of India and are acting as its selling agent. You will be termed as 'Intermediary' under the IGST Act. The place of supply of Intermediary service is 'place of service provider' under the IGST Act which means the place of supply in your case will be territory of India and thus it will not be termed as Exports, and transaction will attract GST.