9911796707
TMI Blog2019 (6) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... other third party. Therefore, M/s. Sutherland Mortgage Services inc. India is entered into an inter-company agreement with the M/s. Sutherland Mortgage Services Inc. USA for providing services to the customers located outside India. The inter-company agreement is entered only for the purpose of transfer pricing regulation as the branch has no legal separate entity. M/s. Sutherland Mortgage Services Inc. USA has also entered into agreement with customers outside India for providing the services from USA and India branch. M/s. Sutherland Mortgage Services Inc. USA is reimbursing the branch at India for the costs incurred to perform the services and branch issues commercial invoice to Head Office at USA. The applicant has pointed out that M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is where a supply is made from a place of business for which the registration has been obtained, the location of such place of business and where a supply is made from more than one establishment, where the place of business or fixed establishment, the location of the establishment most directly concerned with the provision of the supply. Accordingly, in this case, the location of the supplier is the place for which registration has been obtained. The perusal of scope of work and the corresponding invoices make it clear that the services are actually provided from Sutherland Mortgage Services Inc. India branch to the customers in USA and not to the head office located in USA. The service provided by Sutherland Mortgage Services Inc. India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blishments of a distinct person. The petitioner satisfies the following conditions required for the concept of "export of service": (a) the supplier of service is located in India (Sutherland Mortgage Services Inc. India Branch) (b) The recipient of service is located outside India (customers of Sutherland Mortgage Services Inc. USA) (c) The place of supply of service is outside India (service provider is in India and the services are received in USA) and (d) The Indian Branch has received the money is foreign exchange (e) 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. Therefore, the supply of services made by Sutherland ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the supplier of services or the location of the recipient of services is outside India are contained in Section 13 of the IGST Act, 2017. Section 16 of the IGST Act, 2017 provides for zero rating of certain supplies namely; exports and supplies made to special economic zone units or a special economic developer and the manner of zero rating. Thus, the entire issue is intrinsically related to determination of 'place of supply' of service by the applicant. In this case the supplier of services is located in India and the recipient of the services is located outside India. As per Sec.13 of IGST Act, the liability to pay tax is dependent upon the 'place of supply'. Section 97(2) of the Central Goods and Services Tax Act, 2017 and K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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