9911796707
TMI Blog2020 (10) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... od of 30 days from the date of service of this order. RULING 1. This is an application under Sub-Section (1) of Section 97 of the CGST/SGST Act, 2017 (herein after referred to as Act) and the rules made thereunder filed by M/s Midas Foods (P) Ltd, Suijeet Bhawan, Main MP Chowk, Ramnagar Road, Kashipur, U S Nagar -Uttrakhand seeking an advance ruling on following issues: (a) Whether Overseas Commission Agent is covered within the definition of the term 'intermediary' as provided under section 2(13) of the IGST Act, 2017; (b) Whether services received by applicant from the Overseas Commission Agent falls within the meaning of the term 'import of services' as provided under section 2(11) of the IGST Act, 2017; (c) Wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reby admitted. 5. Accordingly opportunity of personal hearing was granted to the applicant on 08.10.2020. Shri Ashwarya Sharma on behalf of the applicant appeared for personal hearing on the said date and re-iterated the submissions already filed with the application. Ms Preeti Manral, Deputy Commissioner, SGST Dehradun, concerned officer appointed by the State Authority, also present during the hearing proceedings. 6. From the record submitted by the applicant we find that applicant is registered in Uttarakhand with GSTIN bearing no. 05AACCM1659E1ZR. Before proceeding in the present case, we would first go through the submissions filed by the applicant and the same is summarized as under: (i) the appellant is a supplier of goods and ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er: (a) The said MOU is signed between the applicant & Mr. Bobby Kapoor, a resident of UAE; (b) The supplies shall be made only on receipt of confirmed purchase orders, facilitated by Mr. Bobby Kapoor; (c) Mr. Bobby Kapoor has ample experience in providing intermediary services in international market and is expected to provide such services to represent the company before LULU Hypermarket, Tim Horions, Marafie and other customers facilitated by Mr Bobby Kapoor in Middle East and to provide product support, to arrange confirmed purchase orders, facilitate liquidation of bills raised by the company and to facilitate settlement of any concerns raised by the customers/company time to time (d) Commission will be calculated on FOB value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pect of goods exported and not in the name of Mr. Bobby Kapoor and has paid the commission to Mr. Bobby Kapoor on agreed terms. A.4 In terms of legal provisions, we observe that any person who enables the supply of goods/services between two persons, is considered as intermediary. However, where a person is providing services or supplies goods on his own account to his customers, it cannot be termed as an intermediary. As per the agreement dated 31.03.2019, Mr. Bobby Kapoor has to arrange or facilitate the supply of goods of the applicant to international market and in return he shall get the commission on agreed terms. A.5 Thus on perusal of legal provisions, agreement dated 31.03.2019 & other records submitted by the applicant in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich provides that the place of supply for the intermediary services would be the location of the supplier of such services (i.e. location of intermediary service provider). Thus we find that the condition (iii) is not satisfied as the place of supply of service is not in India. B.3 Thus we observe that the services received by the applicant is out of the ambit of "import of services" in as much as the condition (iii), supra, is not satisfied in terms of section 13(8) (b) of IGST Act, 2017 as place of supply of service is out of India since the location of Mr. Bobby Kapoor, a intermediary, is UAE. C. The applicant is required to pay GST on RCM basis under section 5(3) of the IGST Act, 2017 on commission paid to the Overseas Commission Ag ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
