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TMI Blog2020 (10) TMI 1268X X X X Extracts X X X X X X X X Extracts X X X X ..... y of a service as to whether a service can be termed as import of service or otherwise. On perusal of section 13 of the IGST Act, 2017, we find that the section 13(8) (b) of IGST Act, 2017 is relevant to the issue in hand which 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 the condition (iii) is not satisfied as the place of supply of service is not in India. Levy of GST on RCM basis under section 5(3) of the IGST Act, 2017 - commission paid to the Overseas Commission Agent - HELD THAT:- The said section deals with levy and collection of tax i.e IGST and section 5(3) of the IGST Act, 2017 provides that the Government may, on the recommendations of the Council, by notification, specify categories of supply of goods or services or both, the tax on which shall be paid on reverse charge basis by the recipient of such goods or services or both and all the provisions of this Act shall apply to such recipient as if he is the person liable for paying the tax in relation to the supply of such goods or services or both. The 'import of services' shall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term 4. In the present case applicant has sought advance ruling on classification and determination of the liability to pay tax on supply of services. Therefore, in terms of said Section 97(2) (a) (e) of CGST/SGST Act, 2017, the present application is hereby 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 Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of the consignment; (e) The payment of commission will be made on monthly basis based on receipt of sale proceed; (f) This understanding shall be effective for the financial year 2019-20 from 1st April, 2019 to 31st March, 2020. 8. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. Now we proceed by taking the issues one by one: (A) Overseas Commission Agent is covered within the definition of the term 'intermediary' as provided under section 2(13) of the IGST Act, 2017 A.1 In this context, we find that section 2(13) of the IGST Act, 2017 provides that intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied in as much as Mr. Bobby Kapoor, supplier of service, is located outside India being a resident of UAE and the applicant .being the receiver of service, is located within India. Now in respect of bill condition, we find that the section 13 of the IGST Act, 2017 specifically deals with place of supply of a service as to whether a service can be termed as import of service or otherwise. On perusal of section 13 of the IGST Act, 2017, we find that the section 13(8) (b) of IGST Act, 2017 is relevant to the issue in hand which 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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