9911796707
TMI Blog2021 (7) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... supply of goods from the buyers located in India. He then connects such prospective buyers with the supplier of goods who are located outside the country. The supplier of goods thereafter despatches the goods directly to the buyers. Intermediary services or not - HELD THAT:- It has been admitted by the applicant that the value of supply of services in the form of commission is determined at the rate normally prevalent in the market which is generally 1% or 2% depending on the volume of trade. It clearly establishes the fact that the supply of services as provided by the applicant is inextricably linked with the supply of goods made by the overseas supplier - the applicant being supplier of services by way of arranging or facilitating sales of goods for various overseas suppliers and admittedly the same is not being done on his own account, satisfies all the conditions to be an intermediary as defined in clause (13) of section 2 of the IGST Act, 2017. Place of supply - HELD THAT:- The place of supply is determined under section 13 of the IGST Act, 2017 where location of supplier or location of recipient is outside India. In the present case, the applicant being the supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression GST Act would mean the CGST Act and the WBGST Act both. 1.2 Teretex Trading Private Limited (hereinafter referred to as, the applicant) is going to be engaged in supplying services by way of arranging sales of goods for various overseas manufacturers/ traders. 1.3 As stated by the applicant, the modus operandi of the business activities to be undertaken by him may be briefly summarised as under: (i) To locate prospective overseas/Indian buyers and know their requirement of goods; (ii) To arrange sales of the said goods from the foreign manufacturers/ traders to the prospective buyers; (iii) Goods are delivered to the buyers directly by the suppliers located outside the country; (iv) No prior agreement is made by the applicant with the overseas manufacturers/ traders for arranging such sales; (v) The applicant receives consideration in the form of commission in convertible foreign exchange from the overseas suppliers. 1.4 The applicant is of the opinion that the services going to be undertaken by him shall be termed as export of servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (the recipient of services in the instant case) and the applicant (the supplier of services in the instant case) cannot be termed as merely an establishment of a distinct person in accordance with Explanation 1 in section 8 of the IGST Act, 2017. 2.5 The applicant further portrays following nature of supply of services to be undertaken by him: (a) Services is provided where both the supplier and the recipient of the goods are located outside the taxable territory of India; (b) Services is provided where the supplier of goods is located outside the taxable territory of India and the recipient of the goods is located within the taxable territory of the country. 2.6 The applicant is of the view that both the supplies as enumerated in the preceding paragraph fulfil all the conditions stipulated under clause (6) of sub-section (2) of the IGST Act, 2017 so as to qualify as export of services and the applicant, therefore, doesn t have any liability to pay tax on such supply of services. 3. Submission of the Revenue 3.1 The concerned officer from the revenue has not expressed any view on the issue raised by the applicant. 4. Observations Findings of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rvices on his own account. So, according to clause (13) of section 2 of the IGST, an intermediary is: (i) a broker, an agent or any other person; (ii) who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons; and (iii) who doesn t supply such goods or services or both or securities on his own account. 4.5 In the instant case, the applicant has admitted that he procures purchase order for supply of goods from the buyers located in India. He then connects such prospective buyers with the supplier of goods who are located outside the country. The supplier of goods thereafter despatches the goods directly to the buyers. Question may arise that whether mere identification of customers and to connect them with the supplier would result in a supplier of service being classified as an intermediary? 4.6 It has been admitted by the applicant that the value of supply of services in the form of commission is determined at the rate normally prevalent in the market which is generally 1% or 2% depending on the volume of trade. It clearly establishes the fact that the supply of services as provided by the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
