Question 19: What special provisions are attracted in GST with regard to associated enterprises? Answer: An enterprise which participates, either directly or indirectly, through one or more intermediaries, in the management, or control or capital of the other enterprise is an associated enterprise. In the context of GST, associated enterprise is particularly relevant in the… Read More »
Question 18: When would it be construed that I have made a supply of services (under GST) involving temporary transfer or permitting the use or enjoyment of any intellectual property right? Answer: Generally, the End User Licence Agreement (EULA) is the legal contract between a software application author or publisher and the user of… Read More »
Question 17: I am obtaining online database access services from a company abroad over the net, would I have to pay tax on reverse charge? Answer: The recipient, if registered, has to pay the applicable IGST on reverse charge basis. If the recipient is not registered, the matter is treated as an online information and… Read More »
Question 16: If I supply a laptop bag along with the laptop to my customer, what would be the rate of tax leviable? Answer: If the laptop bag is supplied along with the laptop in the ordinary course of business, the principal supply is that of the laptop and the bag is an ancillary. Therefore,… Read More »
Question 14: I have more than one SEZ unit in different States; do I need to take separate registrations? Also, I have two SEZ units in one State. Can I take a single registration? Answer: (1) Yes. Under GST, every entity shall take GST registration in each State from which it makes taxable supplies. However,… Read More »
Question 13: I am an agent in India of a foreign IT/ITES provider (principal located outside India). For agency services, I bill the principal in convertible foreign exchange. Whether GST liability arises in this case? Answer: You are an intermediary and the place of supply of the service provided by you to the principal is… Read More »
Question 11: I am an Indian Company who makes software and sells it outside the country. I have hired a firm (not a related party) ‘C’ located abroad to facilitate the supply of software in Europe and the USA; would I be liable to pay GST on the payments that I make to this entity… Read More »
Question 10: Would I be liable to pay GST on reverse charge even if the foreign supplier of software from whom I buy for use in my firm registered under GST was to accept the payment in Indian Rupees? Answer: Yes, you would be liable to pay GST. A supply is treated as an… Read More »
Question 9: How to determine the location of the recipient under IGST ? Answer: Location of the recipient of service is defined in section 2(14) of the IGST Act. A recipient of services is treated as located outside India if his place of business where he receives services is outside India or, if he does… Read More »
Question 8: How do I determine the place of supply of IT/ITES services under GST ? Answer: Place of supply of IT/ITES services is the location of the recipient in terms of section 12 and Section 13 of the IGST Act, 2017. However, if the recipient is not registered and his address is not available… Read More »