GST APPLICABILITY FOR FORWARDING AGENT

223 views 4 replies

Pratik

Article

23 Points Joined May 2012

ABC Ltd is a forwarding agent and is taking tanks on rental to export the chemicals of XYZ Ltd. To take those tanks on rental ABC Ltd has three choices to deal with which are as below –

1. Whether ABC Ltd takes tanks on rent from PQR Ltd, a registered Indian company. In this case at what rate PQR Ltd will charge GST to ABC Ltd?

2. Whether ABC Ltd takes tanks on rent from DEF Pte Ltd registered company in Singapore with no permanent place of business in India. As its import of services, Will ABC Ltd be liable to pay GST on reverse charge mechanism (RCM) being the import of service and if yes then at what rate?

3. Whether ABC Ltd takes tanks on rent from PQR Pte Ltd registered company in Singapore with the place of business in India also but payments are being made to Singapore registered company and invoice is being made by PQR Pte Ltd. In such case who will charge GST at what rate?

Replies (4)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

1. @ 18%
2. yes Under RCM @ 18%
3. Kindly clarify : Invoice being made by PQR Pte Ltd is registered & located in India if yes then No RCM as does cover under the defination of Import of Services u/s 2(11) of IGST act

Guest

The link to the below video provides detail explanation to GST implications on freight forwarder, type of tax payable and GST exemption available to them.

https://youtu.be/pu1NPB3eWUM

Pratik

Article

23 Points Joined May 2012

Thanks for the reply Pankaj Sir.
PQR Pte Ltd is registered in Singapore but it has its Indian company also named as PQR Ltd but invoice is being made by Singapore based company and also payment is being made to Signapore based company only. In this case also RCM applies being import of services or Is there any specific notification issued by department?