Export of services
Query (Issue) Started By: – CA.LALIT MUNOYAT Dated:- 26-2-2018 Last Reply Date:- 26-2-2018 Goods and Services Tax – GST
Got 4 Replies
GST
An Indian citizen is retained by a company in Italy to explore market potential in India and abroad also. He is paid euro 5000\/- per month in convertible foreign exchange. He negotiates with potential customers and if, successful, the company directly supplies the product to the customer. Whether the negotiations are successful or aborted, he will get his remuneration from the company. He is not concerned with the supply or its payment by the customer. He is directly concerned with the Italy company. In a way he is providing services to the company in Italy and getting the <\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n not taxable under GST. However, the activity is "intermediary service", and place of supply is within India. Keeping in view the nature of activity, it is taxable under GST. Exact reply can be given only after going through the terms and conditions of appointment letter\/contract. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n under IGST. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Export of services Query (Issue) Started By: – CA.LALIT MUNOYAT Dated:- 26-2-2018 Last Reply Date:- 26-2-2018 Goods and Services Tax – GSTGot 4 RepliesGSTAn Indian citizen is retained by a company in Italy to explore market potential in India and abroad also. He is paid euro 5000\/- per month in convertible foreign exchange. He negotiates … Continue reading “Export of services”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-10596","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10596"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/10596\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nWhat appears to me GST in this case is not legally avoidable.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nIf the company has absorbed that person as an employee then there is no GST as this service is exempted. There should be employment agreement to establish the same.
\nReply By CA.LALIT MUNOYAT:
\nThe Reply:
\nThanks everyone for their valued opinion. I have become more specific in the query which will help the experts in arriving at the right conclusion:\n<\/p>\n
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\n * The services rendered by Mr. B which is in question. Whether as Export of Service ?
\nThe definition of export of services provides as under:-
\n(6) ” means the supply of any service when,
\n * the supplier of service is located in India;
\n(ii) the recipient of service is located outside India;
\n(iii) the place of supply of service is outside India;
\n(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
\n(i) Mr. B, the supplier of service, is located in India
\n(ii) The recipient of service is located outside India. Now the definition of Recipient is as under:
\n(93) “recipient” of supply of goods or services or both, means-
\n(a) where a consideration is payable for t<\/p>\n
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