• Importing Services

Hello, I am taking marketing services from the Philippines and my Revenue is from Export of services. 
I'm doing exports under LUT in GST. 

I want to know do I have to pay Equalisation Levy or GST from my import of services?

And If I paid, can I get refund for the same?
Asked 1 month ago in GST

Hi

 

Generally, you need to pay GST in reverse charge basis for import of services for which you can claim ITC.

 

In case of marketing services, it has to be first determined where the place of supply is. Kindly elaborate your marketing arrangements with the service provider so that we may guide you properly or we may discuss the issue over a phone consultation.

Lakshita Bhandari
CA, Mumbai
5160 Answers
348 Consultations

5.0 on 5.0

If the contract is on a fixed pay irrespective of the sales, GST shall have to be paid on reverse charge basis.

However, if the contract is such that the fees would be paid as a percentage of sales in the foreign country, this would be a case of intermediary service. Since in this case place of supply would be outside india, GST shall not have to be paid.


 

Equalization levy will be applicable only if the services are in the nature of online digital advertisement (such as amt paid to google/ facebook etc)

and

the annual accrued payments made to one single service provider (non resident) exceed Rs. 100,000 in one financial year.

Lakshita Bhandari
CA, Mumbai
5160 Answers
348 Consultations

5.0 on 5.0

Dear Sir,

 

As a basic principle, GST law says that all supplies of goods & services made as imports into India will be treated as an inter-state supply. All inter-state supplies attract IGST. So import of services into India will attract IGST. 

Equalisation levy shall apply if payment is being made to non resident(which in your case holds good) and annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.

This concept of equilsation levy is still evolving therefore the question of equalisation and gst is yet to be resolved and is under consideration.

 

Regards

Shiv Kumar Agarwal

 

Shiv Kumar Agarwal
CA, Delhi
475 Answers
74 Consultations

5.0 on 5.0

Hello sir

on import of service u need to pay GST & then u can claim ITC

Equalisation levy will apply only if payment is made to non resident and annual payment made to one service provider exceeds Rs. 1,00,000 in one FY

Poorvi Jain
CA, Indore
137 Answers
1 Consultation

4.8 on 5.0

Hello,

 

You would be required to pay GST for the import of services on a reverse charge basis.

Equalization levy is charged on Specified Services (online advertisement/provision for digital advertising space) and the aggregate amount of consideration payable for the specified service received or receivable does not exceeds Rs. 1 lakh in any previous year.

I hope this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Hunny Badlani
CA, Madhya Pradesh
2451 Answers
8 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

Import of services attracts GST under reverse charge basis. 

 

Equalisation Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to equalisation levy:

  • The payment should be made to a non-resident service provider;
  • The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.

 

Currently, not all services are covered under the ambit of equalisation Levy. The following services covered:

  • Online advertisement;
  • Any provision for digital advertising space or facilities/ service for the purpose of online advertisement;

Payal Chhajed
CA, Mumbai
4796 Answers
90 Consultations

5.0 on 5.0

It is advisable to take a phone consultation for detailed discussion.

Payal Chhajed
CA, Mumbai
4796 Answers
90 Consultations

5.0 on 5.0

Hi

 

In Import of Services reverse charge mechanism is applicable 

 

 

Equalization Levy is a direct tax, which is withheld at the time of payment by the service recipient. The two conditions to be met to be liable to the levy: The payment should be made to a non-resident service provider; The annual payment made to one service provider exceeds Rs. 1,00,000 in one financial year.

Karishma Chhajer
CA, Jodhpur
2167 Answers
15 Consultations

5.0 on 5.0

Hi

 

Please have a phone consultancy for further details discussion. 

Karishma Chhajer
CA, Jodhpur
2167 Answers
15 Consultations

5.0 on 5.0

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