Services received from Overseas Commission Agent are not ‘import of services’ as place of supply is out of India: AAR UK
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 29 July, 2021
Latest from Taxmann
Case details: Authority for Advance Rulings, Uttarakhand Midas Foods (P.) Ltd., In re - [2021] 128 taxmann.com 360 (AAR- UTTARAKHAND)
Judiciary and Counsel Details
-
- Anurag Mishra and Amit Gupta, Member.
- Ashwarya Sharma, Adv. for the Applicant.
Facts of the Case
The applicant entered into agreement with Overseas Commission Agent located outside India to arrange supply of applicant’s goods outside India. The applicant sought advance ruling on classification and determination of the liability to pay tax on supply of such services.
AAR Held
The Authority for Advance Ruling observed that Overseas Commission Agent engaged in providing services in the international market and the applicant wished to utilize his expertise to get confirmed purchase order from outside India and for that the applicant shall pay commission. The section 2(13) of the IGST Act, 2017 provides that “intermediary” means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or include a person who supplies such goods or services or both or securities on his own account.
Therefore, after checking the agreement between the parties, it was observed that the overseas commission agent would fall within the definition of ‘intermediary’ as provided under section 2(13) of the IGST Act, 2017. Also, the section 13(8)(b) of IGST Act, 2017 provides that the place of supply for the intermediary services would be the location of the supplier of such services i.e. outside India in this case. Hence, the services received by the applicant would be out of the ambit of “import of services” being place of supply would be out of India and no tax would be levied.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
