My firm takes IT projects from an online Service based Marketplace www.guru.com; where Websoft Inc (doing business as Guru.com) is an entity from Pittsburgh, USA and they charge a certain percentage (%) of the total project value as a "
Project Fee" and also take a monthly fee as "Subscriptttion Fee" for bidding into the software projects into their portfolio.
Through email & Helpdesk ticketing system, Guru.com has confirmed that they do not have any permanent establishment or any representative in India. But, they are not giving Form 10F declaration and the Tax Residency Certificate of their country.
Should we pay the GST on the project and subscripttion fees taken by Guru.com? If we need to pay the GST, then at what rate it should be paid?
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GST On Non-Resident Payments
Replies (4)
In term of Section 13(12)of IGST Act the POS will be the location of Receptient , hence you are required to pay GST on Reverse charge @ 18%.
Thanks Mr. Pankaj. Will it be the 18% of equivalent/actual INR charged OR will it be the 18% of gross up amount in 15CA?
Shall be on actual amount of INR charged, the bill raised by you.
I do not raise the bill, but guru.com taken the fee either from my guru.com usd wallet or from my company's credit card.
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