Question ID :
40858
CLASSIFICATION OF SERVICE
A PERSON PROVIDED SERVICES TO OVERSEAS COMPANY AS A INTERMEDIARY SERVICE PROVIDER FOR MARKETING OF GOODS OF OVERSEAS COMPANY IN INDIA. THE ASSESSEE PROVIDES SERVICE OF FACILITATION A SUPPLY OF GOODS AND ARRANGEMENT OF DELIVERY OF GOODS IN LOCAL CUSTOMERS WHO IS SITUATED AT INDIA. THE OVERSEAS COMPANY GIVE COMMISSION FOR THIS SERVICE. THE WHOLE PAYMENT OF COMMISSION IS RECEIVED IN CONVERTIBLE FOREIGN EXCHANGE. IS THIS SERVICE FALL UNDER EXPORT OF SERVICE OR NOT. IS THERE ANY LIABILITY FOR PAYMENT OF GST ARISE IN THIS CASE. KINDLY GIVE ADVISE ON THIS MATTER.
Posted by
AJITKUMAR L PATEL
on
Oct 05, 2020
Filed Under
GST
Section 2(6) “Export of services” means the supply of any service when, –
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
(iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; or in Indian rupees wherever permitted by RBI.
The Place of Supply of service is within India then GST applicable.
However please refer the case- The Administrative and support services supplied to foreign client, where payment is received in foreign exchange, is export of service and is zero rated.( New Global Specialist Engineering Services P Ltd. In re (2019) (AAR-Maharashtra),
Posted by
CA A V Ramana Reddy on
Oct 07, 2020