Supply of consulting services by a foreign company project site situated in India is not considered as import of service
Place of supply— In the instant case, applicant is a Japan based company, in association with Tokyo electric power company, holding inc.
Japan based Company has entered into an agreement with an Indian entity Odisha Power Transmission Corporation Limited whereby consultants have agreed to provide consultancy services.
The following question is asked in the application
“Whether the applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services rendered to M/s Odisha Power Transmission Corporation Limited”?
The applicant would carry out the services through its expert belonging/sub-station Engineer. At the time of PH, the applicant was asked whether the applicant holds any office India, in response, it was stated that the applicant does not hold any office in India whether owned or rented. But We find from the contract document that OPTCL has provided an office to the consultant and the office operation and maintenance charge etc also to be borne by OPTCL.
Held that—Supply of consulting services through sub-station Engineer/ expert of the applicant to OPTCL is not, therefore import of service within the meaning of section 2 (11) of the IGST Act. The Engineer/expert belonging to the applicant should be treated as a supplier located in India, and made liable to pay GST, the place of supply being determined in terms of section 12 (2) (a) of the IGST Act. Since, applicant is liable for payment of GST, we hold that he is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited.
The recipient is not, therefore, liable to pay GST on reverse charge basis in terms of Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017.
Supply of consulting services by a foreign company project site situated in India is not considered as import of service
Place of supply— In the instant case, applicant is a Japan based company, in association with Tokyo electric power company, holding inc.
Japan based Company has entered into an agreement with an Indian entity Odisha Power Transmission Corporation Limited whereby consultants have agreed to provide consultancy services.
The following question is asked in the application
“Whether the applicant is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services rendered to M/s Odisha Power Transmission Corporation Limited”?
The applicant would carry out the services through its expert belonging/sub-station Engineer. At the time of PH, the applicant was asked whether the applicant holds any office India, in response, it was stated that the applicant does not hold any office in India whether owned or rented. But We find from the contract document that OPTCL has provided an office to the consultant and the office operation and maintenance charge etc also to be borne by OPTCL.
Held that—Supply of consulting services through sub-station Engineer/ expert of the applicant to OPTCL is not, therefore import of service within the meaning of section 2 (11) of the IGST Act. The Engineer/expert belonging to the applicant should be treated as a supplier located in India, and made liable to pay GST, the place of supply being determined in terms of section 12 (2) (a) of the IGST Act. Since, applicant is liable for payment of GST, we hold that he is required to be registered under Odisha Goods and Services Act, 2017 and Central Goods and Services Act, 2017 for the consultancy services provided to Odisha Power Transmission Corporation Limited.
The recipient is not, therefore, liable to pay GST on reverse charge basis in terms of Notification No. 10/2017-Integrated Tax (Rate) dated 28.06.2017.