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TMI Blog2020 (7) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... ts overseas client and carries out all the functions in India as necessitated by its client. The mere fact that the payment has been received in convertible foreign exchange by the applicant will not qualify the transaction of the applicant as export of services. The applicant in the present case by providing marketing and consultancy services, facilitates the supply of goods i.e., fluid cracking catalysts and its additives from Grace Davison(Singapore) to it's clients in the Territory i.e, India. Besides, the condition that transaction not being done on his own account makes the applicant rightly fit into the definition of intermediary in the instant case - In the instant case the intermediary services are provided to the recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Cracking Catalysts and Additives. Grace Davison is a business unit of W.R. Grace (Singapore) Pte. Ltd., a Singapore corporation (hereafter Grace ), with its principal place of business at 501 orchard Road, #07-02 Wheelock place, Singapore 238880 and it engaged DKV Enterprises Pvt. Ltd., as it's authorized nonexclusive Consultant for sale of it s products to the HPCL Visakha Refinery, the CPCL Chennai Refinery and the IOCL Barauni Refinery (hereinafter the Territory ) reserving unto itself and its affiliates the light to sell the products directly in the territory or through other consultants and distributors. The applicant claims that only marketing consultancy service is being done by them in India on behalf of foreign compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled a request seeking adjournment of Personal Hearing on 18.09.2019 and finally appeared on 23.10.2019 and reiterated the written submissions. 6. Discussion and Findings: We have examined the submissions made by the applicant in their application and the assertions made by the authorized representative as well at the time of Personal Hearing. The applicant submitted that in the capacity of consultant, they will promote the sale of and solicit orders for the products throughout the Territory in accordance with the marketing plans and objectives of Grace. The Consultant shall have no power to bind Grace and shall negotiate for orders of the products to be transmitted to Grace for acceptance, only at the prices and in accordance wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontracts. Net sales price of the products shall mean Grace's FOB price in U.S. dollars for the products exclusive of freight, customs duties, taxes (including sales and value added taxes) packaging, insurance and any charges for technical service . After the examination of the nature of the marketing and consultancy services provided by the applicant consultancy between the applicant and its overseas client, now we take up the issue at hand i.e., whether the services provided by the applicant are export services or not. Section 2 (6) of IGST Act 2017 defines export of services as under: (6) export of services means the supply of any service when,- (i) the supplier of service is located in India; (ii) the recipien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntermediary under the clause 13 of Section 2 of the IGST Act, 2017 (13) intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account; The applicant in the present case by providing marketing and consultancy services, facilitates the supply of goods i.e., fluid cracking catalysts and its additives from Grace Davison(Singapore) to it's clients in the Territory i.e, India. Besides, the condition that transaction not being done on his own account makes the applicant rightly fit into the def ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce . In the instant case the intermediary services are provided to the recipient located outside India and the Inter-state provisions as contained under Section 7 (5) (c) shall be applicable and hence IGST is payable under such transaction. In view of the foregoing, we pass the following. RULING (Under Section 98 of Central Goods and Services Tax Act, 2017 and the Andhra Pradesh Goods and Services Tax Act, 2017) Question 1: Whether the services supplied by the applicant are liable under export or service or not Answer 1: The services in question are not Export of Service but Intermediary Services for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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