US Company doing business in India

who is paying to consultants 

local client or company 

Which taxes are your Indian consultant incurring?

If you are talking about income tax that is their responsibility and not yours, other than that no tax would be applicable on them.

We can schedule a call and understand the situation.

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

Thank you.

If your Indian consultants are registered under GST, they will charge GST on their services (typically 18%). Your company is responsible for paying the full invoice amount, which includes the GST. You need to reimburse the consultants for this tax, as they are required to collect and remit it to the Indian tax authorities.

- If the consultants in India raise invoices directly to US based firm then consultants in India are liable to pay GST. Under GST, for services provided by Indian consultants to the clients in India, place of supply of services is the place where the services are actually performed (where recipient is unregistered) or shall be the location of the recipient of services (where recipient is registered)

- If the hiring of consultants in India is outsourced to another consultancy firm in India then such firm is not liable to pay GST on such services

For detailed discussion you may opt for phone consultation

It depends upon business model that whether you act as aggregator or you act as service provider

Let's say if you are aggregate and coaches enroll on your platform to connect with customer and in return you only charge commission or service fees than  gst is applicable to the extent of that amount only

However if you providing service directly and if it's through offline mode than you are liable for GST since performance of service is in India and it will attract GST liability

However this can be structure well to make sure have minimum compliance and gst implications

- Indian consultants must raise an invoice to you as export of service.
- As per the Indian laws, "export the goods and services but not the taxes"- the above raised invoice should not charge any VAT /GST on the value of services.
- Indian consultants are not required to pay GST/VAT on the export of services provided that apply for Letter of Undertaking (LUT) from GST department.

Thanks
Damini