Statutory Compliances for Payment to International Suppliers via Credit Cards

Hi Experts,

I am curious as to what are the regarding statutory compliance needs to be followed in order for payments being made via Credit Cards to suppliers outside India. Do we need to pay GST on RCM Basis and whats are the compliance required in terms of Income Tax Deductions for the said payments. These are Professional/Technical services provide by foreign clients in India

 

Thanks

Asha Kanta Sharma

ashakantasharma @ gmail.com

Replies (1)

Payments to international suppliers for services trigger the Reverse Charge Mechanism (RCM) for GST, where you must pay IGST and issue a self-invoice. Additionally, you must deduct TDS under Section 195 of the Income Tax Act and file the necessary documentation (Form 15CA/15CB) before remitting the funds.

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