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2019 (10) TMI 788 - AUTHORITY FOR ADVANCE RULING, KARNATAKAClassification of services - in the nature of employment or independent service or intermediary service - applicant is required to make presentation of products of the company to the prospective clients of the company. The applicant reports to the Sales Manager of the company. HELD THAT:- In the instant case, the applicant is making presentation before the prospective clients and facilitates the supply of goods by the company for whom he is providing services and he does not supply such goods on his own account and hence squarely falls under the category of “intermediary” as per section 2(13) of the IGST Act, 2017. Since the word “intermediary” is not defined in the CGST Act but defined in the IGST Act, the same meaning as assigned to it under the IGST Act would be applicable even under the CGST Act, 2017 - the applicant is providing management services in marketing as an intermediary with a HSN Code of 9983 11. The nature of service rendered by the applicant, if it is an intra-State transaction, falls under clause (ii) of entry no. 21 of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 and hence is liable to tax at 9% under the CGST Act. Similarly it is also liable to tax under Karnataka Goods and Services Tax Act 2017 at 9% as per clause (ii) of entry no. 21 of the Notification (11/2017) No. FD 48 CSL 2017 dated 29.06.2017. But if it is an inter-State transaction, it would be liable to tax at 18% under clause (ii) of entry no. 21 of the Notification No. 8/2017 -Integrated Tax (Rate) dated 28.06.2017. Time of supply in relation to the transaction - HELD THAT:- The time of supply would have to be determined as per the provisions of sub-section (2) of section 13 of the CGST Act, 2017. Regarding the value of the supply of services, the amount received by the applicant in relation to the services provided both directly and indirectly would be the value of supply of services. This would also include the amount of consideration reimbursed by the company to the applicant in the form of expenses incurred by the applicant, which will also form the consideration.
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