XYZ(India) supplying services of Freight Forwarders / Clearing and forwarding agents and are mainly in providing transportation services in relation to import and export by sea and air. During providing these services, they pay on behalf of their client certain charges to different authorities and then get it reimbursed from their client at actuals. 1) Is XYZ required to pay GST on these charges recovered? If no, are they required to proportionately reverse the input tax credit for common services since not charging GST on reimbursement?
Menu
GST on reimbursement of expenses vis - a - vis reversal of ITC
Replies (2)
1). GST is not required to be paid if a separate invoice is being issued by XYZ Ltd to their clients for the same and the amount paid is including Gst to XYZ ltd by their clients you should also have a valid TAX Invoice on your name from those authorities for which amount is being paid to claim ITC.
2). No concept of reversal of ITC.
Kindly refer Rule 33 of CGST Rule (concept of pure Agent)
Recent Topic
- Business income source for husband and wife
- Set off of LTCL against STCG under section 536(2n)
- Audit Workflow tool
- Is CA through direct entry easy for a commerce stu
- Dividend and withholding tax - DTAA- RSU
- NRI Query: Capital Gains Tax Exemption under Secti
- Royalty payment to UK
- Calculate ITR2 tax with equity and non equity prof
- LTCG on residential property sale - Rebate?
- TDS MISMATCH AND AIS
Related Topics
CAclubindia
