GST for Dr Note to Parent Company

147 views 3 replies

Mohanraj J

1221 Points Joined March 2018

Dear Friends,

We are providing Communication & Coordination services to our parent company's (situated in Japan) clients in India for selling their products. So, we are raising Dr Note for some percentage of annual sales as per agreement. In this case any GST impact?
Also, which reference rate shall we take? Either RBI reference rate or Group Companies Exchange rate?

Please guide me accordingly.

mohanraj_vkj @ yahoo.co.in

Replies (3)

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

As per the Definition of Export Services Provided in Section 2(6) Of IGST Act :the supplier of service & the recipient of service are distinct person (As per explanation 1 in section 8) , is not treated as export .

Hence the services being provided by you is not considered as export & Moreover it's exempted as per Notification 15/2018 IGST (R)

So No GST is applicable.

Pankaj Rawat

GST Practitioner

55062 Points Joined June 2017

Sorry for above deeply.

It's sure that it's not considered export hence the Notification 15/2018 IGST(r) is not Applicable as the Place of supply is India.(Services being rendered in India)

So It's not Export , but Taxable & CGST/SGST is applicable @ 18%