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2022 (12) TMI 807 - AAAR - GSTPlace of supply - supplier of service and recipient of service are located in India - immovable property located outside India - construction of Institute of Security and Law Enforcement studies at Addu City in Maldives, constructed for Government of Maldives under an Memorandum of Understanding between India and Maldives - recipient of service - place of supply in respect of the works contract for setting up of the Institute of Security and Law Enforcement Studies at ADDU City in Maldives - time limitation. HELD THAT:- In order to determine, the Place of Supply, it is necessary to determine the supplier and recipient of the supply and the location of the supplier and recipient. In this context, it is necessary to examine the definitions of Supplier and Recipient as per the Provisions of the CGST Act, 2017 Section (2), Sub-section (105) of the Act defines supplier as Supplier in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied - Here, the supply of service (works contract service), the agreement which enforceable by law is entered into between M/s Sri Avantika Contractors (I) Limited and M/s NBCC Limited, New Delhi. Hence, the appellant M/s Sri Avantika Contractors (I) Limited, will be the supplier of Works contract service. On careful perusal of the definition of "person" under subsection (84) of section 2 of the CGST Act, 2017 and the definitions of "company" and "foreign company" under Section 2 of the Companies Act, 2013, it is observed that a company incorporated in India and a foreign company incorporated outside India, are separate "person" under the provisions of CGST Act and accordingly, are separate legal entities. Thus, 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 a foreign company under the Companies Act) are separate persons under CGST Act, and thus are separate legal entities - the registered place of business of M/s Avantika Contractors (I) Limited, Maldives cannot be considered as fixed establishment of M/s Avantika Contractors (I) Limited, India. The location of immovable property is outside India, therefore the Place of supply of services is location of the recipient i.e., Delhi as per the provisions of Section 12(3) of the IGST Act, 2017 - the transaction becomes an inter-state supply and is taxable under the provisions of Sec 7, sub-section (1) of the IGST Act, 2017.
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