Question ID :
38078
NIl rated or Zero rated
Hello all, we are a company in India which is subsidiary of a company in USA wherein our parent company holds 87% of our shares, we provide support services to our parent company and we invoice them and we are of the opinion that this is export and hence its a zero rated supply, but there are other views and as per those this is a nil rated supply. can anyone guide us on this along with the provision of the law??? Also request you to elaborate the concept of distinct persons if possible
Posted by
SRIMANTH KULKARNI
on
Apr 04, 2019
Filed Under
GST
If you are billing to your holding company in foreign currency and receiving the payment in convertible foreign exchange then it is an export of service and it is a zero rated supply even you are billing to your parent company. Here your organisation and your parent entity is two distinct artificial and judicial person. One of them is an artificial and judicial person registered in USA and your entity is an artificial and judicial person registered in India as per Indian Companies act. Certainly they are related party as per relevant accounting standards and IAS.
Posted by
CA. JHA SHANKAR KUMAR on
Apr 04, 2019