Transfer of Monetary Proceeds without underlying Import of Services are liable to IGST under RCM

The Maharashtra Authority for Advance Ruling (AAR) has recently ruled that the transfer of monetary proceeds without underlying import of services by M/s. IVL India Environmental R&D Private Limited is liable to be taxed under Integrated Goods and Services Tax (IGST) as per the Reverse Charge Mechanism (RCM). The assessee seeked ruling on the liability to pay tax on mere transfer of monetary proceeds by the applicant, IVL India Environmental R&D Private Limited to IVL Swedish Environmental Research Institute Limited.

Source Taxscan

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