US company providing consulting services to India

Dear Angie,

Please note that your company being incorporated outside India would not be governed by GST laws. Your Indian consultant and as well as your Indian clientele on the contrary would have to comply with the said applicable laws.

In relation to this the invoice being submitted by you to your clients would not be applicable to any Indian Tax viz GST and the same needs to be complied by your client at their own end under Reverse Charge. Please check for the applicability of any US laws.

Further the fee charged by your subcontractor would also, for you, not have any GST implication and any compliance needs to be done by the subcontractor at his end, and no burden of the same would be applicable on you.

Please advise in case of any further clarification.

Thanks & Regards,

CA Aditya Dhanuka.

Hi

1. No. Both the transactions are separate contracts. Hence, you aren't liable to GST in India.

2. The Indian subcontractor providing services to you as a service receiver located outside India shall be considered as zero rated supply. GST shall not be charged to you.

Hi Angie,

Hope you are doing well and in good health.

Transaction 1 - NJ based company (Service provider) billing to Indian client (Service recipient) - No GST is payable by NJ based company as you are located outside the Indian territory.  Indian based company is liable to pay GST on reverse charge mechanism (RCM) @18%. NJ based company is not liable to show any GST tax figure on the invoice to be raised to Indian client.

Transaction 2 - Indian subcontractor (Service provider) billing to NJ based company (service recipient) for consulting services- The services provided by Indian subcontractor to NJ based company falls under the definition of zero export of services and not liable to charge any GST on their invoices to be raised to NJ based consulting company.

The Indian subcontractor is liable to deduct TDS under the Income tax Act.

For detailed discussion, you may opt for phone consultation

Regards

CA Vivek Kumar Arora

1. No

2. It will be nil rates supply by your sub contractor. So.no GST needs to be paid 

1. If you are taking service from sub contractor on principal to principal basis then since you don't have any place of business in India no need to register or pay GST. Your client would pay GST on same in India.

2. Your sub contractor cannot charge GST from you.

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