XYZ (India) paying GST under reverse charge on import of service. XYZ also paying TDS under the Income Tax Act on the amount paid to the foreign service provider details of which are given herein below under two different situations:
Situation – 1 (As per the terms of the contract, the foreign supplier wanted full payment as per Invoice Value without any deduction)
|
Details |
Amount (₹) |
|
Invoice Value of the foreign Supplier |
2452573.32 |
|
TDS Calculated on the Invoice Value i.e., on ₹ 2452573.32 and paid to the Govt. |
613143.33 |
|
GST paid under reverse charge on the Invoice Value i.e., on ₹ 2452573.32 |
441463.20 |
Situation – 2 (There was no mention in the terms of the contract by the foreign supplier that he want full payment as per Invoice value without any deduction)
|
Details |
Amount (₹) |
|
Invoice Value of the foreign Supplier |
613825.17 |
|
Actual amount paid to foreign supplier after deducting TDS paid to Indian Govt. of ₹ 61383 |
552442.17 |
|
TDS Calculated on the Invoice Value i.e., on ₹ 613825.17 and paid to the Govt. |
61383.00 |
|
GST paid under reverse charge on the Invoice Value i.e., on ₹ 613825.17 |
110488.53 |
- Under Situation -1, whether XYZ is required to pay GST under reverse charge on ₹. 2452573.32+ ₹ 613143.33 or on ₹. 2452573.32?
- Whether the GST paid under reverse charge under Situation – 2 is correct?
What is he correct position of law under GST?
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