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TMI BlogIntermediary Service provided to a Foreign client for supply of goods outside the taxable terrotory of IndiaX X X X Extracts X X X X X X X X Extracts X X X X ..... Intermediary Service provided to a Foreign client for supply of goods to a Foreign client by the Provider of Service located in Taxable territory of India As per the amendment to Rule 2 and effectively Rule 9 (c) of PPS Rules 2012 , the Income from Intermediary Service for supply of goods (Commission) is taxable w.e.f. 1st Oct. 2014. If the supply of the goods is affected by a foreign clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the intermediary located in India to a Customer outside the taxable territory of India, will the service be taxable even though the recipient of Service is outside the Taxable Territory of India and the Supply of Goods is done to the third party Customer outside the taxable territory of India? Can anybody give a factual explanation on the Taxability of the subject Intermediary Service? - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By CS SANJAY MALHOTRA - The Reply = Rule 9 of Place of Provision of Service Rules defines the Location of Service Provider as the place for the purpose of discharge of Service Tax Liability in specified cases mentioned therein. Further Rule 9(c) includes the Intermediary which has been amended vide N otification No. 14/2014-Service Tax dated 11.07.14 (applicable from 01.10.2014) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) in rule 2 for clause (f), the following clause shall be substituted, namely:- Intermediar y means a broker, an agent or any other person, by whatever name called, who arranges or facilitates a provision of a service (hereinafter called the main service) or a supply of goods, between two or more persons, but does not include a person who provides the main service or supplies the goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds on his account; ; Submission : With the change in the definition of Intermediary, if the commission agent or person arranging or facilitating service or supply of goods between two or more persons : IF SITUATED OUTSIDE INDIA and providing services therefrom is exempted from Service Tax i.e. Reverse Charge is not applicable. Prior to Change in definition Commission agents were based fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r e.g. in USA and goods were shipped in Europe directly from India, then Indian Company has to pay Service Tax under Reverse Charge and after amendment from 1.10.14 exemption exists. Your issue is similar to above. Intermediary if located in India has to pay service tax irrespective of whether the supply of goods takes place from India to Overseas OR from one country outside India to another ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... country outside India. - Reply By Vinay Kunte - The Reply = Thank you for the illustrated reply. - Reply By MARIAPPAN GOVINDARAJAN - The Reply = The views of Sanjay Malhotra is correct. - Intermediary Service provided to a Foreign client for supply of goods outside the taxable terrotory of India - Query Started By: - Vinay Kunte Dated:- 18-5-2015 Service Tax - Got 3 Replies - Service Tax - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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