dear experts
kindly give your opinion on the below example.
ABC co is located in India
XYZ Inc is located in USA
XYZ Inc sent their vessels at Indian ports for repairs & Maintenance.
ABC supplies the services at their Vessels located at Indian Custom ports.
That services includes clearance of paper work at indian customs.
ABC prepare the invoice in USD on that supply and received the consideration in USD from XYZ Inc.
Q.1 what is the Taxability & place of supply of services supplied by ABC Co. to xyz inc.
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POS of services supplied at custom port to foreign vessels
Replies (1)
The taxability and place of supply of services supplied by ABC Co. to XYZ Inc. would be as follows:
Taxability: The services supplied by ABC Co. to XYZ Inc. would be considered as export of services under GST. Since the recipient of the services, XYZ Inc., is located outside India, the services would be treated as zero-rated supplies, meaning no GST would be applicable on them.
Place of Supply: In this case, the place of supply of services would be the location of the recipient, i.e., the location of XYZ Inc. Since XYZ Inc. is located in the USA, the place of supply would be outside India.
In summary, the services supplied by ABC Co. to XYZ Inc. would be treated as zero-rated supplies under GST, and the place of supply would be outside India.
To learn more about GST on Import and Export click here
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