Commission received by the applicant in convertible Foreign Exchange for rendering services as an 'Intermediary' between an exporter abroad receiving such services and an Indian importer of an equipment is not an export of service. Said supply will be treated as inter-state supply and IGST will be levied @18%.
Levy of GST— In the instant case, applicant is an authorized non-exclusive consultant for Grace products (Singapore) Pte Limited for the sale of fluid cracking catalyst and additives.
The applicant claims that only marketing consultancy service is being done by them in India on behalf of foreign company and their billing is directly done to foreign company in foreign currency and paid by inward remittance. Moreover it is argued that they are neither giving any service to Indian client nor having any agreement or payment to them. In light of the above the applicant approached the authority for advance ruling for the clarification whether his services can be clubbed under export of service.
Applicant is seeking Advance Ruling on the following issue—
Whether the marketing and consultancy services supplied by the applicant are liable under export of service or not?
Held that—The applicant is covered and fits into the definition of 'intermediary" as defined under the IGST Act and, therefore, provisions pertaining to 'place of supply' in case of intermediary services as provided in sub-section 8 of section 13 are relevant.
Accordingly, Commission received by the applicant in convertible Foreign Exchange for rendering services as an 'Intermediary' between an exporter abroad receiving such services and an Indian importer of an equipment is not an export of service. Said supply will be treated as inter-state supply and IGST will be levied @18%.
In the instant case the intermediary services are provided to the recipient located outside India and the Interstate provisions as contained under Section 7 (5) (c) shall be applicable and hence IGST is payable under such transaction.
Commission received by the applicant in convertible Foreign Exchange for rendering services as an 'Intermediary' between an exporter abroad receiving such services and an Indian importer of an equipment is not an export of service. Said supply will be treated as inter-state supply and IGST will be levied @18%.
Levy of GST— In the instant case, applicant is an authorized non-exclusive consultant for Grace products (Singapore) Pte Limited for the sale of fluid cracking catalyst and additives.
The applicant claims that only marketing consultancy service is being done by them in India on behalf of foreign company and their billing is directly done to foreign company in foreign currency and paid by inward remittance. Moreover it is argued that they are neither giving any service to Indian client nor having any agreement or payment to them. In light of the above the applicant approached the authority for advance ruling for the clarification whether his services can be clubbed under export of service.
Applicant is seeking Advance Ruling on the following issue—
Whether the marketing and consultancy services supplied by the applicant are liable under export of service or not?
Held that—The applicant is covered and fits into the definition of 'intermediary" as defined under the IGST Act and, therefore, provisions pertaining to 'place of supply' in case of intermediary services as provided in sub-section 8 of section 13 are relevant.
Accordingly, Commission received by the applicant in convertible Foreign Exchange for rendering services as an 'Intermediary' between an exporter abroad receiving such services and an Indian importer of an equipment is not an export of service. Said supply will be treated as inter-state supply and IGST will be levied @18%.
In the instant case the intermediary services are provided to the recipient located outside India and the Interstate provisions as contained under Section 7 (5) (c) shall be applicable and hence IGST is payable under such transaction.