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TMI BlogClarification relating to export of services—Condition (v) of section 2(6) of the IGST Act 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... r concern/group concern, etc., of a foreign company in India, which is incorporated under the laws in India, to the foreign company incorporated under laws of a country outside India, will hit by condition (v) of sub-section (6) of section 2 of the IGST Act. 2. The matter has been examined. In view of the difficulties being faced by the trade and industry and to ensure uniformity in the implementation of the provisions of the law across field formations, the Board, in exercise of its powers conferred by section 168(1) of the Himachal Pradesh Goods and Services Tax Act, 2017 (hereinafter referred to as HPGST Act ), hereby clarifies the issue in succeeding paragraphs. Relevant legal provisions : 3.1 The export of services has been defined in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 8 of the IGST Act, which is reproduced below : Explanation 2. A person carrying on a business through a branch or an agency or a representational office in any territory shall be treated as having an establishment in that territory. 3.4 Reference is also invited to the definition of person as provided under HPGST Act, 2017, made applicable to IGST Act vide section 2(24) of the IGST Act, 2017. Person has been defined under sub-section (84) of section 2 of the HPGST Act, 2017, as under : (84) person includes (a) an individual ; (b) a Hindu undivided family ; (c) a company ; (d) a firm ; (e) a Limited liability partnership ; (f) an association of persons or a body of individuals, whether incorporated or not, in India or outside India ; (g) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishment of a foreign company in India to any other establishment of the said foreign company outside India will not be covered under definition of export of services. 4.2 Further, perusal of the Explanation 2 to section 8 of the IGST Act suggests that if a foreign company is conducting business in India through a branch or an agency or a representational office, then the said branch or agency or representational office of the foreign company, located in India, shall be treated as establishment of the said foreign company in India. Similarly, if any company incorporated in India, is operating through a branch or an agency or a representational office in any country outside India, then that branch or agency or representational office shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red as a separate legal entity than the foreign company. Clarification : 5.1 In view of the above, it is clarified that a company incorporated in India and a body corporate incorporated by or under the laws of a country outside India, which is also referred to as foreign company under the Companies Act, are separate persons under HPGST Act, and thus are separate legal entities. Accordingly, these two separate persons would not be considered as merely establishments of a distinct person in accordance with Explanation 1 in section 8 . 5.2 Therefore, supply of services by a subsidiary/sister concern/group concern, etc., of a foreign company, which is incorporated in India under the Companies Act, 2013 (and thus qualifies as a company in India ..... X X X X Extracts X X X X X X X X Extracts X X X X
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