RESPECTED ALL
I HAVE ONE QUERY ABOUT OCEAN FREIGHT ON IMPORT.IS RCM APPLICABLE ON OCEAN FREIGHT,IF IMPORT AGREEMENT IS ON CIF BASIS? IF YES THAN HOW CAN WE CALCULATE IT. PLS GUIDE....
THANKS
PRAVEEN KUMAR JHA
8860733962
Menu
REGARDING RCM ON OCEAN FREIGHT ON IMPORT ON CIF BASIS
Replies (6)
As per Notification 10/2017 IGST (R) , Yes RCM is applicable .
pay IGST @ 5 % on 10 % of the CIF value of goods being imported,
pay IGST @ 5 % on 10 % of the CIF value of goods being imported,
whether same rule not applicable in case of import on FOB basis
NO.....IN CASE OF FOB:the Applicant (importer) is liable to bear the cost of
transportation of goods from the respective country upto Indian ports. Hence, for the transportation of the
goods, the Applicant (importer) avails the services of a shipping entity for bringing the said goods to India in a
vessel. In case the said shipping company is located outside India, then the Applicant importer pays the GST
applicable on the supply of services of transportation of goods in a vessel on reverse charge basis in terms
of Section 5(3) of the IGST Act.
HENCE IN CASE OF FOB THE IMPORTER KNOW THE VALUE OF TRANSPORTATION BILL PAID TO SHIPPING COMPANY AS HE PAYS THE SAME .
SO IN FOB THE RCM HAS TO BE DONE THE FREIGHT PAID
Thanks all for your reply
Whether the same rule of 10% applies in case of CIF even if freight charges are shown separately?
Can You send me the Notification Copy for RCM Applicable on Import Material on CIF Basis.
Recent Threads
- Need advise with HRA claim
- Schedule AL limit for FY 2024-25
- Can a person use ITR 1 when she has CG of Rs.250/
- Choice of itr form
- DTAA with US - Interest & Dividend
- Last Year ITR Not Filed and Hence NO TDS was claim
- Does ITR2 take much longer for processing
- New GST Reforms 2025 Announced by PM Modi –
- Share capital Amount
- Fund claimed as nominee of deceased Parent
Related Threads
CAclubindia
