When does igst or gst apply?

Hi

I think the most important part is agreement between indian debt company and UK Debt collection company if the agreement is in nature of professional service than there will be no requirement of GST and indian company can raise invoice without GST to UK Company

However if the agreement suggest nature of principal argent relationship categorically classified as "Intermediary Services " under GST Law than same will attract GST and need to raise invoice along with GST

So the crux is agreement draft between both the companies and scope of work defined.

We can surely help you to provide drafting of agreement or vetting of existing agreement to make sure there is no GST Element and you can save cost of 18% GST Presently levied including advisory on the invoices generated presently and nature of service defined 

- Services provided by Indian debt collection company to UK debt collection company are in the nature of sub-contracting services. The Indian debt collection company is involved in the supply of main services i.e. collection of debt therefore it can not be treated as Intermediary services. It can be treated as export of services subject to fulfillment of conditions for export of services. Most important condition is payment of such services should be received in convertible foreign exchange. The format of the invoice should be according to the law.

For detailed discussion, you may opt for phone consultation.

Yes the India based collection company can issue GST invoices and it will be export of services for the Indian agent. 

In my opinion in normal principal to principal transaction the place of supply is place of recipient and in such case it will be considered as export and if taxpayer in India takes LUT it need not pay GST in India and in any case it cannot charge GST in export invoice.

Further, if he is showing this service is intermediary service then GST will be charged as place of supply will be place of supplier.

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.