Liquidated damage, debit note in foreign trade

Foreign supplier raises debit note towards liquidated damage for delayed supply and commissioning at Indian site,,outside letter of credit.

As Indian importer, what compliance obligation to discharge besides GST liability etc.

Please guide

Jayanta Bandyopadhyay

Howrah

26.8.21

21

Replies (3)
Quick Summary
A foreign supplier has issued a debit note for liquidated damages due to delayed supply and commissioning at an Indian site, outside of the letter of credit. The discussion seeks guidance on the compliance obligations for the Indian importer, beyond standard GST liabilities. It is suggested that this could be treated as the import of services, potentially attracting GST under the Reverse Charge Mechanism (RCM) at 18%.

I think so it is account as importation services and you will have pay gst on such services under RCM.
RCM is applicable

RCM for import of service will be applicable @ 18%

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 October 2026
Article assistants

Shyam S Gupta and Company

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 14 November 2026
Article Assistant

Jitendra Agarwal & Associates

Bengaluru

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
13 November 2026
Chartered Accountant - Fresher

Neeraj Bhagat & Co

New Delhi

CA

View Details