Goods and Services Tax – GST – By: – Mr. M. GOVINDARAJAN – Dated:- 2-3-2019 Last Replied Date:- 5-3-2019 – Intermediary The term intermediary is defined under section 2(13) of the IGST Act as a broker, an agent, or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account. From the above definition it can be inferred that an intermediary can be a broker, an agent or any other person who arranges and facilitates the supply of goods and/or services between two or more persons and who cannot change the nature of supply as provided by the principal. An intermediary cannot alter the nature or value of the service, the supply of which he facilitates on behalf of his principal, although the principal may authorize the intermediary to negotiate a different price. The principal must know the
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aid activities of the appellant clearly in the nature of arranging or facilitating supply of goods by foreign entity to customers in India, the same is considered to be as intermediary services as defined under section 2(13) of the Central Goods and Services Tax Act, 2017 particularly when he is not supplying goods neither on behalf of the principal or on his own account but the same is supplied by the principal, a foreign entity. Therefore the Appellate Authority held that the contention of the appellant that promotion and marketing services provided by him to such foreign entity on his account, excluded from purview of the definition of intermediary service is not acceptable. Intermediary services – Export of services? Section 2(6) of the Integrated Goods and Services Tax Act, 2017 ( IGST Act for short) defines the expression export of services as the supply of services, when- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (ii
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nswer is given in the following case laws- In re Vishakhar Prashant Bhave – 2018 (12) TMI 227 – AUTHORITY FOR ADVANCE RULING, MAHARASHTRA the question for which advance ruling was sought is as to whether the commission received by the applicant in convertible foreign exchange for rendering services as an intermediary between an exporter abroad receiving such services and an Indian importer of an equipment is an export of service falling under section 2(6) of IGST Act and outside the purview of section 13(8)(b) attracting zero rated tax under section 16(1)(a) of IGST Act. The AAR held that since the place of supply of services in this case is in taxable territory, the said intermediary services cannot be treated as export of services under the provisions of GST laws. In re Global Reach Education Services Private Limited – 2018 (8) TMI 392 – APPELLATE AUTHORITY FOR ADVANCE RULING, WEST BENGAL, the appellant promotes the courses of the University, finds suitable prospective students to un
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the subscriber to whom it is proposed to market the CRS software. Based on the organizational and workflow analysis of the subscriber and following a back ground check of their prior activities, the applicant logs on a request into the system through the website maintained by Sabre APAC called Subscriber Communication Management System. If the subscriber agrees to use the CRS software, order forms are collected from them to begin the process for activation of the CRS Software. Once the subscriber is registered successful and a Pseudo City Code is allotted in its favor. Once the code is allotted and the setup is activated the applicant s engineers install user interfaces to access the CRS Software in the subscriber s computer systems. The Authority found that the job of the applicant is to scout for the subscribers in India. The applicant explains and educates the subscribers about the software. The subscribers become aware of the software only after the applicant approaches them. The s
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