Inter Vs. Intra
Query (Issue) Started By: – ShaikhAbdulSamad Ahmad Dated:- 23-6-2018 Last Reply Date:- 2-7-2018 Goods and Services Tax – GST
Got 8 Replies
GST
Mr. India provides intermediary service to non resident company. As per section 13 of the IGST Act, 2017 states that PoS is place of provider of service, which destine it as Intra state. However, section 7(5)(c) of the IGST Act, 2017 colour the transaction as Inter state. Kindly clarify, whether it is Intra or inter.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
You are providing intermediary service to non-resident company. Can you specify whether the non-resident company has any office or permanent establishment in India? If the non-resident company has its office or permanent establishment in India and such office/establishment is located in a State other than the State in which service provider is located then it will be inter-state supply.
If the service provider and the non-resident company has its offi
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not being an intra-State supply and not covered elsewhere in this section”, and “taxable territory is defined at Section 2 (22) which is “(22) “taxable territory” means the territory to which the provisions of this Act apply;”. On cumulative reading it clears that provisions of this Act applies only to India and not the foreign land. Here it is important to note that taxable territory includes, terrestrial water, i.e. sea and sea bed even.
Further, Section 13 (1) of IGST Act, 2017, reads as “(1) The provisions of this section shall apply to determine the place of supply of services where the location of the supplier of services or the location of the recipient of services is outside India”. Even on plain reading it implies that supplies are received or supplied by the person located outside India (in simple words imported by an Indian importer), it shall be treated as inter-state and IGST is to be paid.
Our experts may correct me if mistaken.
Thanks
Reply By ShaikhAbdulSamad Ahmad
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location of service provider, which is India in the instant case.
Our experts may correct me if mistaken.
Thanks
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Section 13 (8) (b) of IGST Act, 2017 stipulates that " the place of supply of services shall be the location of the supplier of services in the case of intermediary services." Therefore in the case of intermediary service though the receiver of the supply is outside the taxable territory . in such a situation whether igst or cgst+sgst is leviable. In my opinion since the service receiver is outside taxable territory igst is payable.
Reply By PAWAN KUMAR:
The Reply:
As per my view, two options are as under:-
1-As per Igst act, if there is no physical presence of recipient in taxable territory then place of supply will be location of supplier, therefore liable for cgst,sgst being intra state supply.
2-In case of purely intermediary services, in such case place of supply will be lication of supplier, thus lia
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