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2021 (11) TMI 290 - AAR - GSTLevy of tax - services procured by the applicant from Beacon US in respect of the referral of the FIS client - import of service - person liable to tax in respect of the services rendered by Beacon US to applicant - whether the place of supply of service is in India? - Intermediary services or not - HELD THAT:- The applicant herein is a subsidiary of M/s Workplace Options LLC (USA), who entered into a global arrangement with M/s Beacon Health Options Inc. -USA (formerly known as Value Options Inc.-USA), which is a company established in USA and does not have any office or fixed establishment in India, for the purpose of mutual referral of clients and work arrangements to Workplace Options Group Companies across the Globe. M/s Beacon, USA, as part of global arrangement identified a customer M/s FIS Global Solutions India Private Limited (‘FIS India’) and referred the said client to the applicant, for a commission named as referral fee based on a formula, agreed by both the parties, which is equivalent to a percentage of the price charged by the applicant to FIS India. Beacon raised the invoice directly to the applicant for the referral fee. In terms of Section 5 of IGST Act 2017, IGST is levied on all inter-state supplies of goods or services, and in terms of Section 2 (21) of Act, ibid, ‘supply’ shall have the same meaning as assigned to in Section 7 of the CGST Act 2017. The applicant, with regard to taxability of the impugned service, admitted that the said service amounts to supply in terms of Section 7 of the CGST Act 2017. It is also admitted by the applicant that the impugned services are imported into India and shall be treated to be an inter-state supply in terms of Section 7(4) of the IGST Act 2017. Place of supply of service - HELD THAT:- The issue whether the impugned services qualify to be import of services or not it is required to determine the place of supply of the impugned service, which is beyond the jurisdiction of this authority in terms of Section 97(2) of the CGST Act 2017. The application is disposed off without any ruling as the determination of place of supply is beyond the jurisdiction of this authority.
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