Snehal Parikh (Service) 17 December 2018
One government undertaking is entered into contract with foreign company having place of business in UK. The foreign company has registered under companies act as foreign company registered under india. The company has got lower TDS Certificate from Delhi having that address registered with IT department and IT department has issued certificate for that address as branch/Unit : Not applicable under section 195 or 197 of IT Act,1961. The company has registered under gujarat and also under diffrent states of india under GST. The contract of government undertaking with foreign company exclusive of all taxes. The taxes will be reimbursed by government undertaking. The contract is in three currencies namely USD, Pound and INR. The contract has six cost centres and there are different milestones under each cost centre. The payment against each milestone under each cost centre has been paid in three currencies. The three separate invoices raised against each milestone under different cost centre as per applicable currency of contract amount and deduct lower TDS and indicate amount payable to foreign vendor. The import bas been under Import bill entry of receiver. The foreign vendor has not raised GST in invoice.
There are two questions ":
1. Whether GST is chargeable on all invoices on all currencies or not ? Please specify section.
2. Whether GST TDS is applicable at 2% on all invoices including foreign currency invoice and INR Currency
Hoping your reply.