Tax Deductions

india the following tax explanation applies to companies who have a registered address in india and exotel renders services to them in india there is a tax applicable for the services provided by exotel and we do charge it we charge 18 00% gst (government mandated) at the time of writing this article and is subject to change also see tax invoice and payment reciept docid\ ed x1hvejak oqiwtv4q0 what is the gst credit which will be shown in the client’s portal? for prepaid customers since the gst component is shown both in the invoice and the receipt voucher, the confusion of which value reflects in the gst portal arises under gst act, the client will be able to claim the credit only based on actual usage made by him during the month – which gets reflected in the invoices raised and not the receipt voucher an invoice is a pre requisite document to claim input credit and such invoice will be issued by us only upon ‘supply’ of services by us, i e , your usage of our services example let us assume that you pay inr 11,800/ (10,000 + 18% taxes) to recharge your account on 05 apr 2019 you will be given a receipt voucher (series starting rdsin19xxxxxx) on the date of payment say, if you had usage of inr 5000/ from 01 apr 19 to 30 apr 19 an invoice will be raised on 01 may 19 for april month’s usage for inr 5,900/ (inr 5,000+18% taxes for series starting dr19sinxxxxx) while preparing the gstr1, we have to file the details of invoices raised for the month so we will be filing the dr19sinxxx series for all the customers hence the input gst that you can take will be inr 900/ i e, on the actual usage made by them, and not inr 1800 paid by them on the receipt voucher/ the balance amount will be reflected based on the usage in the subsequent months this is done because as per section 16(1),(2) of the gst act, input credit can be claimed only based on utilization and not on payment for postpaid customers postpaid customers can claim input gst credits on the invoices shared by us dated the first of every month why is the gst component missing in the invoice? for prepaid clients for whom we have received payments before 01 july 2017, we would have technically collected service tax the credits granted for those payments which remain unutilized by the end of june would have been subsequently utilized in the month of july for which we started raising gst invoices since we have already collected service tax for that usage, we cannot charge them again with gst, because of which we have shown it as a non taxable service as these invoices do not have any gst component in them, though these have got generated after 01 july 2017, they do not bear any credits for the client in the client’s gst portal ( ) non taxable service shows the value of credits utilized from their credit balance as of 30 june 2017 as per section 142(11) of gst act, 2017 when will the credits reflect on the client’s portal? the filing is done on the 11th of every subsequent month and the credits will be reflected for the clients in 4 5 working days post that can i change gstin? change of gstin can be done until the 5th of the subsequent month of invoicing for instance, if the invoice is run on 01 november, the changes can be entertained until 05 december it is the same for change of address too modifications of details can be done only in the following cases the customer was earlier recorded with an incorrect gstin and wants to get it changed we will not be able to revise it for a customer recorded as unregistered earlier how is tds deducted? tds is deducted @ 2% on the total taxable value(usage value in the invoice) and not the total invoice value the reason is, that the invoice value is inclusive of the gst component, and deducting tds on that value will technically lead to tax on tax exotel currently falls under the 2% tds rate by virtue of section 194j(1)(b) fees for technical services please click here to know more about section 194j international (everywhere other than india) the following tax explanation applies to companies who are registered outside india and exotel renders services to them outside india presently, the export of services is zero rated so there will not be any gst charged for any international clients here is a link to the official document by cbec(central board of excise and customs) where section 16(1) of the igst act, 2017 states the above for indian registered companies using our international services we kindly request you to place a request with our customer happiness team on the below mentioned contact details to provide you with the tax invoice with the gst component