GST for subcontracting for a client outside India

Hi Experts,

I recently entered (July 2017) into subcontracting with an indian firm but the services were exclusively delivered outside India. I did not have a GST number when i entered into contract with the subcontractor who is based in India . The subcontractor paid me in INR for the services delivered by me onsite (Saudi Arabia) . He also deducted a service tax of 12% on the total amount which was credited to my Indian account. I did not invoice him / claim GST from him since it was processed like a salary mode .Now he wants me to pay GST of 18.5 % . I was contracted as an individual not as an establishment . Would i require to pay GST or can this be considered as export of supply? Please advise..
Thanks in advance
Warm Regards
Thangadurai
Asked 8 days ago in GST from Saudi Arabia
Hi Thangadurai, 
It can not be considered as export of services as you are receiving the money is INR. You need to collect GST @18% not 18.5%. And you need to get yourself GST registered and do all compliances.
Vidya Jain
CA, Kolkata
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Thangadurai Ji

You are in India and rendering services in Saudi Arabia , right ??
after getting above answer i am able to discuss further
Lalit Bansal
CA, Delhi
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Hi Thangadurai

Was the TDS deducted according to Indian income tax laws? How was it deducted? A salary based or professional consultancy based?

My answers will depend on the above.
Lakshita Bhandari
CA, Mumbai
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Hello,

In no way can he deduct GST from your payment. The max is he can withhold the amount of money till the time he gets the credit from the government or he can apply for a LUT/ Bond and pay no tax at all.

Trust this clarifies your query. 

Feel free to call / get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, FCA, LLB, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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Hi,

The sub contractor cannot withhold GST from you. It is his responsibility to pay it and then claim a refund or apply for an LUT/ Bond.

Regards,
Keerthiga Padmanabhan
M.Com., CA, LL.B
Keerthiga Padmanabhan
CA, Greater Mumbai
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Hi,

It is the liability of service receiver to pay GST. He cannot ask you to bear the amount of GST.

Abhishek Dugar
CA, Mumbai
1997 Answers
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