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GST RCM Query

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GIRISH LELE

60 Points Posted on 18 March 2024

We received certain services from our overseas group company related with HR and Insurance.
Our group company has raised invoice on us in foreign currency.

My question is whether Tds and GST under RCM is applicable while we account for this invoices in our books.

please advise.

Replies (2)

Quick Summary

This discussion addresses whether TDS and GST under Reverse Charge Mechanism (RCM) apply to services received from an overseas group company, invoiced in foreign currency. Based on the IGST Act, Section 13, the place of supply is deemed to be India as the recipient is located here. Therefore, GST under RCM is applicable to these imported services.

Bindu

CA Final Student

112 Points Posted on 18 March 2024

The location of the supplier of service being outside India and that of the recipient being in India, place of supply(POS) is to be determined as per Section 13 of the IGST Act. The said supply is not covered under sub-sections (3) to(13) and therefore POS is location of the recipient i. e in India. Hence GST under RCM is applicable on import of services from overseas group company