Hello, I work from India as a freelance software developer. I have a client say A who resides in UK and another person B who resides in France. Both A and B knows each other. I provided software development service to client A and raised invoice for my services against client A. But the payment for that invoice is made by person B in the form of EUR. Consider I have GST, IEC, and payment received in my bank in EUR. 1. Am I still eligible for zero rated GST, given there is a difference between service recipient and payer? 2. Can I have problem in receiving FIRC from bank in above case? 3. Do I need to change the invoice and raise the bill against B (instead of A), while I given service to A? Please note its export of service (its not export of goods)
Hi
1. Yes
2. I don't foresee any issues provided point 3 is followed.
3. The invoice should mention the fact that payment shall be made by B.
Further, there must be some documentary evidence to prove the transaction. It could be done through a tripartite agreement.
Hi,
1. If A and B both are related parties then it would not be a problem to justify the transaction. If both the parties are independent then it would be difficult to justify that all the conditions for export of services have been fulfilled.
2. FIRC is available in all cases where foreign exchange is received in India.
3. If possible that is the ideal approach.
I am based in New Delhi. You can contact me by text me at aroravivek1982@gmail
Hello,
1. Yes, it would be considered as Export of Services , i.e. Zero Rated under GST.
2. No.
3. You would be required to mention the same in your invoice.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Yes since you have provided service to a place outside India and you have received amount in foreign currency so you are eligible as all the conditions to declare this as export of service is fulfilled.
I don't think so.
No. You just need to link that such payment was made for this service. Because its a normal scenario where many times service is received by one branch and payment is done by another branch.
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Thank you.
This might create an issue in FEMA
Hi
1.Yes, This will be considered as export of Services.
2. No, there will be no issue
3.It is better if you mention in invoice that payment will be done by B.
Dear Sir,
Hope you are doing well !!
1. Yes, you are still eligible for zero rated GST.
2.No.
3.Yes.
