Conventionally, LD amount gets adjusted thru invoice netting off or a separate remittance.
My query is
BOE gives a declaration about true price
LD amt thru banking channel stays unreglected in BoE, so Customs Dept is not aware though they get higher revenue
But our declaration about real price in BoE is diluted.
My feeling.. to be adjusted in exporter vendor's invoice itself, so that as Importer wr are protected and do not pay gst on LD on reverse charge method.
Kindly guide.
Customs: Adjusting the LD directly within the vendor's commercial invoice before import is the best approach. It ensures your Bill of Entry reflects the true transaction value and prevents you from overpaying customs duty.
GST RCM: You do not need to pay GST under Reverse Charge on Liquidated Damages. Per CBIC Circular No. ______. LD is a compensation for breach of contract, not a taxable supply of service.
Anupam Parashar & Co.
Ghaziabad
CA Final
View Details
Bharat Shah & Associates
Mumbai
CA Inter
View Details
Hema Yashwanth & Associates
Chennai
B.Com
View Details
CCI
Pro
CAclubindia
