The services of the applicant by way of arranging sales of goods shall not be considered as ‘export of service’ as defined under clause (6) of section 2 of the IGST Act, 2017.
Authority for Advance Ruling — Export of Services – The applicant engaged in supplying services by way of arranging sales of goods for various overseas manufacturers/ traders. The various business activities to be undertaken by him are to locate prospective overseas/Indian buyers and know their requirement of goods; to arrange sales of the said goods from the foreign manufacturers/ traders to the prospective buyers; Goods are delivered to the buyers directly by the suppliers located outside the country; No prior agreement is made by the applicant with the overseas manufacturers/ traders for arranging such sales; the applicant receives consideration in the form of commission in convertible foreign exchange from the overseas suppliers. The applicant sought ruling as to whether services going to be undertaken by him shall be termed as ‘export of services’ as per clause (6) of section 2 of the IGST Act, 2017 and therefore, he has no liability to pay tax on such supply of services. The authority observed that the applicant is found to be an ‘intermediary’ as defined in clause (13) of section 2 of the IGST Act, 2017. So, the place of supply shall be determined under sub-section (8) of section 13 of IGST Act, 2017 which shall be the location of the supplier of services. As a result, the supply shall be treated as an intra-State supply and tax will be levied accordingly.
Held that:- The Hon’ble Authority for Advance Ruling held that the services of the applicant by way of arranging sales of goods shall not be considered as ‘export of service’ as defined under clause (6) of section 2 of the IGST Act, 2017.
The services of the applicant by way of arranging sales of goods shall not be considered as ‘export of service’ as defined under clause (6) of section 2 of the IGST Act, 2017.
Authority for Advance Ruling — Export of Services – The applicant engaged in supplying services by way of arranging sales of goods for various overseas manufacturers/ traders. The various business activities to be undertaken by him are to locate prospective overseas/Indian buyers and know their requirement of goods; to arrange sales of the said goods from the foreign manufacturers/ traders to the prospective buyers; Goods are delivered to the buyers directly by the suppliers located outside the country; No prior agreement is made by the applicant with the overseas manufacturers/ traders for arranging such sales; the applicant receives consideration in the form of commission in convertible foreign exchange from the overseas suppliers. The applicant sought ruling as to whether services going to be undertaken by him shall be termed as ‘export of services’ as per clause (6) of section 2 of the IGST Act, 2017 and therefore, he has no liability to pay tax on such supply of services. The authority observed that the applicant is found to be an ‘intermediary’ as defined in clause (13) of section 2 of the IGST Act, 2017. So, the place of supply shall be determined under sub-section (8) of section 13 of IGST Act, 2017 which shall be the location of the supplier of services. As a result, the supply shall be treated as an intra-State supply and tax will be levied accordingly.
Held that:- The Hon’ble Authority for Advance Ruling held that the services of the applicant by way of arranging sales of goods shall not be considered as ‘export of service’ as defined under clause (6) of section 2 of the IGST Act, 2017.