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TMI Blog2021 (1) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... e operating cost incurred by the applicant plus mark up of 13% on such costs for payment processing services. It is noticed that applicant would receive said fees from WWD US, even in respect of Indian Customers, who directly remit service charges to WWD US through International Credit Card, wherein applicant is not in the picture. In view the above it was observed that by providing the payment processing services to WWD, the applicant is not providing any service to the customers of WWD in India - The applicant satisfies all the three conditions, of Composite supply hence the applicant services get covered under the definition of composite supply . Whether, in the facts and circumstances, the specified transaction of the Applicant is to be reckoned as being provided to SPA or to the customers of SPA located in India? - HELD THAT:- It is an exhaustive definition, implying it can neither be expanded nor reduced. In the context of a supply involving payment of consideration, a recipient of supply of goods or services means the person who is liable to pay the consideration and any reference to a person to whom a supply is made shall be construed as a reference to the recipien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d digital engraving methods. 3. The applicant submitted that they have entered into a contract with SPG Prints Austria GMBH (hereafter referred as SPA ) to provide particular services to customers of SPA in India, as per SPA s instruction . Such services shall include installation / up-gradation of machines sold by SPA, training at SPA s customers site etc. The copy of the contract has been enclosed for reference. The relevant extract from the contract relating to scope of service is as under: Services Stovec has agreed that it shall on behalf of and as per the instruction from SPA shall provide services with respect to: a) Installation and/or upgrades of machines sold by SPA and shall also give training at SPA s customer site in co-ordination with SPA b) Machines sold by SPA in India and which are under warranty period c) Machines which are under service contracts with SPA d) Machines which are not having warranty and/or service contracts Apart from the above mentioned scope of services, Stovec will also receive commission for service contracts sold in India from SPA 4. The applicant submitted that they shall raise the invoice to SPA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the transaction between the parties has been produced hereunder for ease of understanding: Images 8. In view of the above, the Applicant sought the Advance Rulings on the following questions on the specified transaction: Question 1. Whether, in the facts and circumstances, the specified transaction of the Applicant should be categorized as individual supply or composite supply of service as per the Central Goods and Services Tax Act, 2017 and the Gujarat Goods and Services Tax Act, 2017? Question 2. Whether, in the facts and circumstances, the specified transaction of the Applicant is to be reckoned as being provided to SPA or to the customers of SPA located in India? Question 3. - Whether, in the facts and circumstances, the specified transaction of the Applicant could be categorized as that of an intermediary as per Section 2(13) of The Integrated Goods and Service Tax Act, 2017? Question 4. - Whether, in the facts and circumstances, the specified transaction qualifies to be Export of service as per Section 2(6) of The Integrated Goods and Services Tax Act, 2017? Applicant s interpretation of law and/or facts PA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. Essentially the question in this case revolves around who is the recipient of supply for the services supplied by the Applicant. The term recipient has been defined under Section 2 (93) of The Central Goods and Services Tax Act, 2017 ( CGST Act ). The definition has been reproduced hereunder for your easy reference: (93) recipient of supply of goods or services or both, means- (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, 6. Therefore, in cases of supply involving consideration, the person who is liable to pay consideration would be considered as the recipient of supply. In the present case, the consideration is paid by SPA and hence, the Applicant believes that SPA would be considered as service recipient for the supply of services by the Applicant f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... money transfer and therefore have to be treated as recipient and consumer of service not the person receiving money in India through WU. There is one more reason why the persons to whom the money was delivered by agents/sub-agents of WU cannot be treated as recipient of services provided by WU. 9.1 The applicant stated that Service Tax is akin to tax on sale of goods. Service Tax can be said to be a tax on sale of service. Just as sale of goods which attracts sales tax is transfer of property in goods by a person (seller) to another person (buyer) for some consideration, a service is an activity carried out by a person for another for some consideration. Just as in case of sale of goods it is buyer who is obliged to pay for the goods purchased, in case of provision of service, it is recipient of the service who is obliged to pay for the service to the service provider. Thus the service recipient is the one who is obliged to pay for the services to the service provider and whose need is satisfied by the service or in other words, is the buyer of service . 10. In addition to above, the Applicant also relied upon the order of Hon ble CESTAT in the case of GAP International ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the customers of WWD in India. 12. Based on above discussion, it could be stated that a person would be qualify as recipient of supply if the following ingredients are satisfied: Ingredients / attributes Present set of facts On whose instructions the services are provided SPA Who would pay for the services so provided SPA Whose needs would be satisfied as a reason of provision of service SPA 13. Considering the above, the Applicant submittted that the service recipient for specified transaction would be SPA. PART C Whether, in the facts and circumstances, the specified transaction of the Applicant could be categorized as that of an intermediary as per Section 2(13) of The Integrated Goods and Service Tax Act, 2017? 14. The term intermediary has been defined under Section 2(13) of The Integrated Goods and Service Tax Act, 2017 which has been reproduced hereunder: (13) intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The last phrase in the means clause of the definition of intermediary contains the clause or any other person, by whatever name called . The question that has to be asked is whether any other person will have a nature/ character distinct from that of a broker or an agent or will continue to have the same nature and character as that of a broker or an agent. 20. The most appropriate rule of interpretation which is to be used while interpreting the phrase by whatever name called is the legal principle of Ejusdem Generis. 21. The application of this Rule is necessitated because of the use of a general phrase preceded by specific words. The words ejusdem generis mean of the same kind or nature . Ejusdem generis is a rule of interpretation that where a class of things is followed by general wording that is not itself expansive, the general wording is usually restricted things of the same type as the listed items. 22. The Golden Rule of Interpretation enunciated and espoused by various judicial pronouncements states that the words of a statute must be given their plain grammatical meaning. If the intention of the legislature has to be gathered and deciphered in its pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, the phrase; by whatever name called will include a person in the same genus as that of a broker or an agent. In other words, the phrase by whatever name called , will mean a person who is also appointed in a representative capacity. 28. The Applicant is thus clearly neither appointed to act as a broker or an agent nor in any manner similar to that of a broker of agent. If that were the case, the same would have been apparent from the agreement itself. Thus, the first condition to be satisfied for a person to qualify as an intermediary is not fulfilled. The Applicant does not arrange or facilitate provision of services or supply of goods 29. The Applicant submittted that the second part of the definition of the term intermediary defines the nature of transactions which if provided by a broker or an agent or by any person (by whatever name called) would be covered under the services provided by an intermediary . 30. This second condition needs to be cumulatively fulfilled, i.e. it should entail arrangement or facilitation of a main supply of goods or services between the service recipient, i.e. the overseas entity and its customers in India. In other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovides the main supply on his own account. In other words, the Applicant submits that even if the supplier satisfies the nature of supplier of service as an agent/ broker; if such a person provides the supply on his own account, then such a supplier is not covered under the definition of term intermediary. 36. The importance of this condition has been explained in the Education Guide released under the erstwhile Service Tax era, which provides that a person who arranges or facilitates a provision of a service, but provides the main service on his own account is also excluded from the definition of intermediary . The Education Guide specifically recognizes and well explains that all situations of provision of service on a client s behalf, will not qualify as an intermediary . Where the service is provided on the own account of the service provider, the categorization as an intermediary does not arise. The relevant extract of the Education Guide issued by the CBEC in June 20, 2012 is reproduced below: 5.9.6 What are Intermediary Services ? Similarly, persons such as call centers, who provide services to their clients by dealing with the customers of the clien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y SPA but it is an agreed amount based on hours spent for providing services. This means that the yardstick for paying the Applicant is not based on any percentage or whether any supply is made by SPA etc. 42. As clarified in the Education Guide, an intermediary (such as travel agents, tour operator, commission agent of service and recovery agent) is remunerated based on successful closure of a transaction which is not the fact pattern in present case. 43. Apart from above, the guiding principles provided in Education Guide issued under during erstwhile Service Tax regime for determining whether a person is acting as an intermediary or not can be discussed here to analyse if the supply of service by the Applicant can be categorized as intermediary or not. These guiding principles are: (i) Nature and Value: An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. Also, the principal must know the exact value at which the service is supplied (or obtained) on his behalf, and any discounts that the intermediary obtains mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No Value is not linked with the supply by SPA. The Applicant charges fees / consideration based on hours spent. 7. Consideration is generally an agreed percentage of the sale or purchase price which is called commission Yes Not applicable - there is no consideration paid to the Applicant by SPA which is dependent on the volume of supply made or to be made by SPA Identity Title 8. Service provided on behalf of the principal is clearly identifiable Yes Not fulfilled - the Applicant is not providing any services on behalf of principal, as the specified transaction explained in the facts above, are provided by the Applicant in its own capacity directly to SPA on principal to principal basis and are independent of any supply by SPA. Judicial precedents under the erstwhile service tax law 45. Under the erstwhile service tax regime, the scope of the definition of the intermediary services were analysed and it was held that when the services are provided on a principal to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not intermediary. 48. Further, the applicant relied upon the decision in the case of M/s. Evalueserve. Com Pvt. Ltd. Versus CST, Gurgaon 2018 (3) TMI 1430 - CESTAT CHANDIGARH , where the CESTAT, Chandigarh after relying on the decisions in the case of IN RE: GoDaddy India Web Services Pvt. Ltd = 2016 (3) TMI 355 - AUTHORITY FOR ADVANCE RULINGS and IN RE: UNIVERSAL SERVICES INDIA PVT LTD = 2016 (5) TMI 750 - AUTHORITY FOR ADVANCE RULINGS has held that the Appellant were themselves providing the services to their client as the main service provider on principal to principal basis and hence the activity undertaken by them will not qualify as intermediary as defined in Rule 2(f) of Place of Provision of Services Rules, 2012. 49. Reliance is also placed on the decision of the CESTAT, Chandigarh in the case of Sunrise Immigration Consultants Private Limited v. CCE ST, Chandigarh2018-VIL-539-CESTAT-CHD-ST = 2018 (5) TMI 1417 - CESTAT CHANDIGARH . In this case, the Appellant was getting certain amount as commission for facilitating the aspirant student to get admission to the college and for referring investors borrow loan from foreign based bank to the peopl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies to be Export of service as per Section 2(6) of The Integrated Goods and Services Tax Act, 2017? 53. The term export of services has been defined under Section 2(6) of The Integrated Goods and Services Tax Act, 2017 ( IGST Act, 2017 ) as under: (6) 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 54. Accordingly, the following conditions are required to be fulfilled by any assessee to qualify as an export of service: Sl.No. Condition for export of service Fulfilment of conditions 1. Supplier of service is located in India Fulfilled 2. Recipient of service ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pply of the following services shall be the location of the supplier of services, namely: (a) services supplied by a banking company, or a financial institution, or a non-banking financial company, to account holders; (b) intermediary services; (c) services consisting of hiring of means of transport, including yachts but excluding aircrafts and vessels, up to a period of one month. 58. Section 13(8) states that the place of supply shall be the location of supplier of services if the services supplied are in the nature of intermediary services. At this juncture, the Applicant wishes to submit that as discussed in Part C of this application, the Applicant believes that the specified transaction does not qualify to be an intermediary service and hence, Section 13(8) would not be applicable in the specified transaction. 59. Considering that Section 13(3) to Section 13(8) are not applicable in the present scenario, the Applicant believes that Section 13(2) would be applicable and hence, the place of supply of services shall be the location of the recipient of services i.e. location of SPA, which is outside India. 60. Considering the above, the Applicant belie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... site in co-ordination with SPA b) Machines sold by SPA in India and which are under warranty period c) Machines which are under service contracts with SPA d) Machines which are not having warranty and/or service contracts Apart from the above mentioned scope of services, Stovec will also receive commission for service contracts sold in India from SPA Service Area a) Stovec will service SPA s machines in India b) Stovec shall not actively solicit service customers having their place of business or in default of such place, their place of residence, outside India c) Both parties agree that service outside India is allowed only after request and written authorization from SPA Customer Contract /Service Process In case of service request for any machine, customer can directly contact either SPA or Stovec. In case the customer contacts Stovec first then SPA has to be informed and as per SPA s instruction action to be initiated from Stovec. Stovec will co-ordinate with SPA s area co-ordinator, directly solve the problem of customer, whereas the release of an action towards the customer will come from SPA s area co-ordinato ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or otherwise. The Flyers issued by the Central Board of Excise and Customs ( CBEC ) for composite supply have provided guidance on how to determine whether supplies are naturally bundled in the ordinary course of business as below: Whether services are bundled in the ordinary course of business would depend upon the normal or frequent practices followed in the area of business to which services relate. Such normal and frequent practices adopted in a business can be ascertained from several indicators some of which are listed below: - The perception of the consumer or the service receiver. If large number of service receivers of such bundle of services reasonably expect such services to be provided as a package, then such a package could be treated as naturally bundled in the ordinary course of business. Majority of service providers in a particular area of business provide similar bundle of services. For example, bundle of catering on board and transport by air is a bundle offered by a majority of airlines. The nature of the various services in a bundle of services will also help in determining whether the services are bundled in the ordinary cours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he operation of machine and other activities like overtime service. 70.2 They should be naturally bundled and supplied in conjunction with each other in the ordinary course of business: Applicant service of installation/ up-gradation of machine, training of customer, travelling hours, working hours and overtime service are naturally bundled and supplied in conjunction with each other in the ordinary course of business. This aspect can be understand by assuming that if engineer of applicant is to visit customer of SPA in India for installation / updation of machine, then he has to travel and for completion of work there may be possibility to work extra hour by the engineer and all these activities are naturally bundled because without one activity other activity or service cannot be performed. Further in the contract held between the applicant and SPA, service charges are defined as under; Service Charge Hourly rates From Stovec to SPA are Travel Hours EUR 40 Working hours EUR 60 Overtime EUR 60 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plied; 72. The Applicant, has argued that person who is liable to payment of goods and service is an recipient of service. While developing the above line of argument, applicant fails to appreciate the true meaning of the terms recipient , as defined under Section 2(93) of the CGST Act. It is an exhaustive definition, implying it can neither be expanded nor reduced. In the context of a supply involving payment of consideration, a recipient of supply of goods or services means the person who is liable to pay the consideration and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied. The recipient is, therefore, so defined as to make separation impossible between the person to whom the supply is made and the one liable to pay the consideration. Of course, when no consideration is involved, as under clause (c) of the above section, the recipient can only be the person to whom the service is rendered. The person who receives the supply in India should, therefore, be considered as the recipien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act 2017 to mean a person including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another. Thus, while an agent includes a broker, it does not mean that every broker is an agent. The fundamental difference being that a broker is a middleman whose job is only to facilitate whereas an agent acts on behalf of the Principal . The applicant has submitted in the application that an agent and a broker does not work at their own behest or instruction but as a representative or on behalf of their principal. In the agreement held between applicant and SPG Print (SPA) it is mentioned in Service clause that, Stovec (Applicant) has agreed that it shall on behalf of and as per instruction from SPA, shall provide services with respect to : The applicant himself admitted the fact that they are working on behalf of their Principal i.e. SPG Print hence falls within the ambit of definition of intermediary. However, the definition of intermediary does not limit its coverage to a broker and agent but bri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neris is applicable. But in the definition, it is clear that the word other is used as an adjective to the person and hence it is commonly understood to exclude the other persons who are preceding it and hence the argument of the applicant cannot be accepted. 75.2 The second part states that the person to be covered under intermediary must arrange or facilitate the supply of goods or services or both or securities between two or more persons. This is the operating part of the definition and any person, by whatever name called, if he is arranging or facilitating the supply of goods or services or both or securities between two or more persons, he would be covered under the definition of intermediary . What can be inferred from this is that, it is not the type of person which determines whether one is an intermediary or not. Rather it is the action of arranging or facilitating the supply of goods or services or both, or securities, between two or more persons, which qualifies a person as an intermediary . An intermediary thus can be a broker or agent or any other person and is only a facilitator for the supply of goods or services or both. The act of arranging or facilitat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d). Stovec shall raise an invoice for the said services: - to SPA, if the service belongs to service mentioned under Clause 1(a) to Clause (c) - to the Indian Customer, if the service belongs to service mentioned under Clause 1(d) Obligation of SPA a) SPA shall provide necessary training and documentation to Stovec s employee(s) to execute the service of its machine in India. b) SPA shall inform Stovec the schedule of installation/upgradation of SPA machine at customer s premises and also a schedule for the training to be given to the representative(s) of Indian customer s of SPA. c) SPA shall inform Stovec the schedule with the mention as to whether the Service to be provided by Stovec to SPA s Customer is under Warranty, Service Contract or otherwise. d) With respect to service contract(s), SPA shall send quarterly commission overview to Stovec based on which Stovec shall raise an commission invoice e) SPA shall provide/ supply spare parts/consumables, as may be required, to provide service(s) to SPA Customer(s). Stovec based upon SPA s recommendation must maintain a stock to serve SPA s customers promptly. Obl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... try Manufacturing of perforated nickel rotary screens, rotary screen printing machines, anilox rollers, engraving chemicals, engraving equipment s, rotamesh screens and rotaplate at its factory situated at N.I.D.C. Nr. Lambha Village, Post: Narol, Ahmedabad, Gujarat. 2. Date of Commencement of commercial production The commercial production has already begun and the Company is not a new Company. 3. Financial Performance for the financial year ended 31.12.2018 Turnover : ₹ 1930.16 Million Profit Before Tax : ₹ 410.46 Million (before exceptional items) 4. Export Performance For the year ended 31.12.2018, the Company has achieved export turnover of FOB value of ₹ 119.67 Million. 5. Foreign Investment or Collaboration a) SPG Prints B.V., The Netherlands (Formerly known as Stork Prints B.V.) are the Promoters of the Company holding 71.06 % of the equity share capital. b) The Plant was established in techni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e financial year 2019 2020, as a % of Annual Consolidated Turnover of the Company. During mentioned financial years, Related Party Transaction with SPGPrints B.V. with respect to purchase of raw materials and components shall not exceed 20% of Annual Consolidated Turnover of the Company as per last audited financial statements of the Company. Note: For determining Material Related Party Transactions for the financial year 2019, the Annual Consolidated Turnover of the Company for the financial year 2018 will be considered and for determining Material Related Party Transactions for the financial year 2020, the Annual Consolidated Turnover of the Company for the financial year 2019 will be considered. 76.1 From the above clauses of the Annual report it is observed that the applicant M/s. Stovec Industries Ltd. is a holding company of M/s. SPG Print, B.V, Netherlands. M/s. SPG Print B.V, Netherlands is having their plants and offices in multiple countries including Austria and India. On the basis of agreement and Annual Report of the applicant, it can be concluded that, the applicant is a holding Company of M/s. SPG Print and applicant being a holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine,. Applicant must purchase all consumables/parts from SPA (It is not allowed to purchase locally); Prices for end customer must be in line with SPA Global Price list. The final price to the customer shall include import duties and other local charges over and above the SPA GLOBAL price list (Landed cost to customer should be the same, regardless if SPA delivers directly to customer or Stovec delivered to customer). The entire gamut of the activities performed by the Appellant as mentioned in the agreement shows that applicant is completely working as per the instruction and recommendation of SPG Print (SPA) in all the cases either in case of providing services to the customer, schedule of services to be provided, training of employee of customer s employee, or purchase of parts consumables from SPG Print (SPA) only, maintaining of stock of parts consumables, timely submission of service and commission Invoice to SPA s area co-odinator, price of parts and consumables in line of SPA Global price. The above clause of agreements clearly states that the applicant is facilitating and arranging services on behalf of SPA to the SPA s customer in India. Hence this is clearly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he instant case, the Appellant is arranging and facilitating the SPA s Indian customer by supplying the service of installation/ upgradation of machines on behalf of and as per the instruction of SPA. If a person either facilitates or alternately arranges any supply of goods or services (or both), between two or more persons, and does not supply such goods or services (or both) on his own account, he would be regarded as an intermediary . From the agreement clause it is ample clear that parts/ consumables of the machine are purchased by the applicant only from SPA and supply the same in the line of Global price of SPA also SPA is providing training to the applicant staff to execute the work as per the instruction and on behalf of the SPA. This clearly shows that the Appellant is clearly facilitating the supply of the service on behalf of the SPA directly to the client s customers in the territory of India and is not supplying such services on his own account. Therefore, the Appellant does not fall within the ambit of the exclusion part of the definition of intermediary. 78. The argument of the applicant that he received fixed consideration based on number of hours spent an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arguments of not receiving the commission do not affect the nature of work of facilitate and arranging of supply of service on behalf of SPA to their Indian Customer The type of consideration received is not a condition that would make the applicant to exclude him from the definition of intermediary . 79.1 Hence in view of the above discussion we members are of the view that applicant specified transactions are squarely covers under the definition of intermediary as defined under Section 2(13) of the IGST Act, 2017. 80. The applicant has taken the support on the various decisions of the advance ruling authorities of the erstwhile service tax regime have been examined and analyzed and it is found that are all related to the service tax era and has no applicability during the GST regime. Hence the same needs to be verified in light of the GST Act. 81. We also rely on the following Rulings of Advance Authority, which are squarely applicable in the instant case: (i) Karnataka Advance Authority in case of M/s. MCAFEE SOFTWARE (INDIA) PVT. LTD {Advance Ruling No. KAR ADRG 56/2019, dated 19-9-2019} = 2019 (10) TMI 787 - AUTHORITY FOR ADVANCE RULING, KARNATAKA has held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of ejusdem generis and Noscitur a sociis not applicable - A general understanding of the term arranging or facilitation would cover a very wide range of activities ranging from marketing or sales promotion of the goods or services of client, locating prospective buyers for client s products or locating sources of supply of goods or services required by client, price negotiation with the prospective buyer/prospective supplier, procuring sales orders in respect of goods or services of the client and like activities. 81.1 On careful reading of the above Rulings of Advance Authority it is observed that they are squarely applicable in the applicant case. In view of the said Rulings, it can be concluded that applicant s activity falls within the ambit of intermediary as defined under Section 2(13) of IGST Act, 2017. 82. We take up the fourth question of the applicant that whether the specified transaction qualifies to be Export of service as per Section 2(6) of The Integrated Goods and Services Tax Act, 2017 or otherwise. In this regard Hon ble High Court of Kerala in the case of M/s. SUTHERLAND MORTGAGE SERVICES INC. Versus PR. COMMR. OF CUS., CGST C. EX., KOCHI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if satisfies all the above five conditions as defined under Section 2(6) of IGST Act, 2017 then it can be concluded that the applicant specified transaction is export of service. 85. The first condition is satisfied as such the supplier of service is M/s. Stovec Industries who is a located in India. The second condition that recipient of service should be located outside India. The recipient of service has already been discussed in detailed in reply of question No. 2 and it is concluded that recipient is Indian customer to whom service is supplied in India. Hence second condition is not satisfied. The third condition that place of supply of service should be outside India. This has already been discuss and concluded with regard to question No. 3 above that for the specified transaction applicant is qualified as Intermediary in terms of Section 2(13) of IGST Act, 2017. Further place of supply for intermediary is defined under Section 13(8) of IGST Act which is read as under: 8) The place of supply of the following services shall be the location of the supplier of services, namely:- (a) -------------- (b) intermediary services; 86. Hence the place of supply ..... X X X X Extracts X X X X X X X X Extracts X X X X
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