9911796707
TMI Blog2020 (1) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... y Credit Scrips. It is seen that the duty credit scrip is purchased by the applicant by means of transfer, which means that the scrip belongs to the applicant and he can import goods against the scrip if he chooses so. The applicant further re transfers the scrip to his client. Both these activities are to be done through the systems put in place by DGFT. These activities are independent of the activities of data management or consultancy services that the applicant offers. The applicant can very well supply only the duty credit scrip by buying it and re selling it or only act as a consultant for the transaction by identifying the seller of the scrip and getting it transferred in the name of their client. Data management activities assisting the client in clearance of goods from customs can also be performed without a supply of duty credit scrip - Such supply of services along with the duty credit scrip as in the service order furnished by the applicant in the case of Sitaram Shipping Services is not naturally bundled together and is not a composite supply. These are several individual supplies which are made in conjunction with each other as specified in the service order by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The applicant submitted a copy of challan evidencing payment of application fees of ₹ 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they are engaged in the business as a consultant rendering services in the field relating to Import-Export compliances to customers with State and Central Office under Customs, Ministry of Finance Commerce and for the applications to DGFT, Udyog Bhavan, Application Digital Keys, etc along with facilitating advisory on duty remittance, advice on adoption of Tax model(s) with procurement of various transferable incentives and providing assistance services in related area of Import/ Export of goods/ services. They also provide services of indoctrination (Training session) explaining the benefits on Advisory relating to accounting payment method in respect of imports, assistance in organizing transferable incentives/ credits and in some cases if required application and related Digital indoctrination, redemption/ utilization/ obtaining/Surrendering/ advisory on filing import bill of entry/ liaison to custom / application of duty credit or to exploit under cus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port, redemption of the scrip. The invoice is single based on the clients requirement. They give an annexure to the invoice indicating the scrip No/ bond No and face value of scrip. They purchase the scrip at a discount on face value and sell with some profit. They do not specify the split in value for the scrip and other services. They stated that it is a composite supply and principle supply is service and hence totally chargeable to 18% GST. The scrip alone is exempt now under Notification. They stated that they will submit the linked documents of Purchase Order (agreement), communication/correspondences for the various services rendered and write-up on activity done in 2 weeks. They also stated that they do not file the Bill of Entry but undertake to help assessee in filing Bill of Entry. The State Jurisdiction Officer reiterated her written submissions. 3.2 In the written submissions filed by the applicant during the personal hearing, they had enclosed copy of the Advance Ruling Application form, Intimation of Personal Hearing, Corporate Profile of the applicant, specimen copies of Invoices Issued by them, specimen copies of the Invoices Received by them, Copies of l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Address, Signatory details like Name, Employee Code on Transfer letters, Export name, address, Contact details, Email ID, IEC Code and in some cases they also record export item details and segments as required by their clients Advocacy: They give services like RTI Drafting, application and follow ups to get various information from departments or companies for their marketing purposes, legal issues, etc Technical Support:- They provide all the technical support with DGFT server, NIC, ICEGATE server, queries supports related to Java as it is very frequently required while using ICEGATES, DGWI etc Digital Key application: They apply digital keys for their clients Import - Export Data: They provide import and export data of their required segments with updates and reports with information on price, quantity, buyers, suppliers, market opportunities, competitor shipments, trading partners, suppliers and strategies Daily updates on GOI Policies under Ministry of Commerce Finance 4.2 The applicant has furnished copy of the Service Order in respect of M/S. Sitaram Shipping Services, wherein the details of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used while rendering the services. And in such situations the foregoing services are to be provided as a single offering of Consultancy service, failing which the provision of service will not be meaningful ii. The service recipient pays single price regardless of the services within the package, applicant is obliged to provide all services including the technical or personal expertise of the consultant and usage of scrips. iii. Consultancy service, consisting of technical or personal expertise of the consultant and the usage of scrips is supplied together to the client, in conjunction as one bundle of service. Conjunction means Condition of being joined iv. Therefore, supply of Consultancy service by the Applicant consisting of technical or personal expertise of the consultant and usage of scrips will have to be construed as a supply of composite service made by the applicant as these services are naturally bundles and supplied in conjunction with each other in the ordinary course of business, one of which (i.e. technical or personal expertise of the consultant) is the principal supply. 6. We have carefully considered the submissions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supply. The applicant supplies consultancy services to the clients relating to the Customs/DGFT/other statutory requirements for import of goods. by advising, updating on the incentives available, facilitating for the same, documents preparation related to duty payments, tracking of the goods, etc. In the instant case they provide along with Contract of duty credit scrips facilitation its accountability, documents preparation related to duty payments like Bill of Entry, etc., Document Management system(DMS i.e., Storage of Hard copies, Soft Copies and Data Entries), Goods transport track, redemption of scrips and refund of additional duties from Customs, if any. The service order is to support in the compliance of Customs and DGFT up to the clearance including credit scrips facilitation. This involves procuring the duty credit scrip from an exporter and supplying it to the client of the applicant. We find that the stated services are supplied along with supplying of the duty credit scrip as seen in the invoice and service order. The applicant is billing the client for a single lumpsum payment. The applicant states that these supplies are naturally bundled together. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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