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TMI Blog2018 (4) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... the Applicant. The Applicant, therefore, represents the University in the territory of India and acts as its recruitment agent. Place of supply of services - Held that: - Whatever services the applicant provisions are provided only as a representative of the University and not as an independent service provider - Being an intermediary service provider, the place of the Applicant s supply shall be determined under section 13(8)(b) of the IGST Act and not under section 13(2) of the IGST Act. - The place of supply is the territory of India. As the condition under section 2(6)(iii) of the IGST Act is not satisfied, the Applicant s service to the foreign universities does not qualify as Export of Services , and is, therefore, taxable under the GST Act. Ruling:- The services of the applicant are not Export of Service and are taxable under the GST Act. This ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. - Case Number 05 of 2018 - 02 /WBAAR/ 2017-18 - Dated:- 21-3-2018 - Vishwanath Member And Partha Sarathi Dey Member Applicant s representative Sri Pulak Kumar Saha, CFA, Partner, Price ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. There is no dispute regarding what the place of supply should be if the applicant is an agent providing an intermediary service to the foreign universities. Had there been such a dispute, this Authority would rather not provide a ruling on this issue at all. This Authority enters the question of whether the service provided by the applicant is classifiable as export from the limited angle of probing whether the applicant is providing an intermediary service. 6. The Applicant also declares that the question raised in the Application is not pending or decided in any proceeding under any provision of the Acts referred to above. The Application is, therefore, admitted. 7. The Applicant is stated to be engaged in Overseas Education Advisory whereby the various courses of foreign Universities are promoted in India among prospective students. The Applicant has tied up with various Universities all over the world. These Universities engage entities like the applicant for promotional and marketing activities for promotion of the courses taught by them and making the prospective students aware about the course fee and other associated costs, market intelligence about the latest e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e treated as Export of Service within the meaning of Section 2(6) of the IGST Act. 11. Section 2(6) of the Integrated Goods And Services Tax Act, 2017, reads as 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; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8; 12. It is, thus, evident from the above citation that in the case of Export of Services all the conditions as laid down under Section 2(6) of IGST Act 2017 is to be followed in totality without any violation, and that there is no scope of partial compliance of the conditions laid down therein. 13. In the copy of the Agreement the Applicant is defined as an Education agent (Definition Clause 1.1). Under Clause 2 of the Background forming part of the Agreement, it is stated that the University engages Education Agent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rformance under Clause 9.4, especially with respect to recruitment targets achieved. The Applicant cannot claim any consideration for its promotional activity unless the students get enrolled through it. If the students get enrolled directly by the University through distant education or online services, the Applicant will not be paid any consideration whether or not it has provided any promotional service (Clause 8.3 of the Agreement). In fact, the Applicant is not allowed to undertake any promotional or advertising activity without prior written approval from the University [clause 4.4(h) of the Agreement]. Apart from the above consideration received from the University, the Applicant is not allowed to receive any fees or charges from the students or deduct anything from the charges or fees payable by the students to the University [clause 4.4(i) of the Agreement]. 17. The Applicant argues at the time of Personal Hearing that payment of consideration based on recruitment is merely the mechanics for determining the quantum of consideration payable. It has no bearing on the applicant s standing as an independent service provider. We fail to appreciate the argument s merit. If pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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