In case of Freelancer Services thru up-work platform where Upwork deduct their charges (for providing clients/Commission) in foreign currency, Offshore bank do charge some charges while remitting the fund to Indian freelancer who has completed the job undertaken thru Upwork. Both (Upwork and Foreign Bank) are not registered under Indian GST. In this Scenario, my client is exporting services under LUT ie without payment of GST and also:
A. We sum up the Upwork Commission and Bank charges in foreign currency and convert to INR as per RBI guidelines.
B. We charge the GST @ 18 on Above Calculated INR considering the IMPORT OF SERVICES (Upwork and Foreign bank) and Pay under RCM.
Kindly confirm if our treatment is correct or not. Thanks in advance.
CAclubindia
