Rcm on commission payment to foreign base ota

RCM 2496 views 2 replies

Manish

21 Points Joined June 2017

One of my friend running a hotel in India. He pay commission to Booking.com B.V located in Netherlands. Such company also have a has support company Booking.com support pvt Ltd in India. Commission bill is raised by foreign company to hotel without Service Tax, but we remit payment to NRO A/C of booking.com B.V with Standard Chartered Bank, Mumbai branch. Booking.comB.V also have PAN no.

My question is 1 who is liable to pay GST. 2. Whether RCM is applicable even if foreign company have support office in India for any purpose. 3. Whether is services comes under intermediary service.

Thank you for your reply

Replies (2)

Karan Batra

Creator: TheProTalks

2325 Points Joined January 2016

You have three questions here, so as per my interpretation following shall be the answers:

1. Your friend is liable to pay GST

2.RCM is applicable in case of Taxable services provided or agreed to be provided by any person who is located in a non-taxable territory and received by any person located in the taxable territory other than business assesse so yes RCM is still applicable here.

3.Intermediatery services were under Place of provision rules under Service tax, they are not under GST so please refer Time of supply concept.

For reasoning refere to this article:

/articles/reverse-charge-under-gst-30277.asp