Import Services Entry and Declaration

Below are guideline(s) on Import Services Entry and Declaration.

Q : My company had hired overseas consultant from Australia to give consultation for my company. What is the applicable tax code and how to declare this transaction?

A : This transaction is consider as imported services and you must use self-recipient accounting (SRA tax code) to declare it in GST-03 return. This mechanism of SRA will record the same value of Supply and Purchase transactions for the imported services. The example for imported services transaction is as follows:

Step 1: Key in a purchase invoice using SRA as tax code, the tax charges will be zero as shown below

Step 2: Key in a payment voucher to supplier. Reverse charge mechanism is made by recipient during payment to supplier