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2020 (6) TMI 182 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKAClassification of services - Online Information and Database Retrieval Services or not - self-administered test taken by the candidates - taxability - levy of IGST - CBEC Circular No. 202/ 12/2016-Service Tax dated 09.11.2016 - HELD THAT:- Sl No. 10 of Notification No. 09/2017-IGST (R) dated 28.06.2017 exempts Services ( not including OIDAR services) received from a provider of service located in a non- taxable territory by the Central Government, State Government, Union territory, a local authority, a governmental authority or an individual in relation to any purpose other than commerce, industry or any other business or profession. Sl. No. 1 of Notification No. 10/2017-IGST (R) dated 28.06.2017 provides for payment of tax on any recipient when service is being supplied by any person who is located in a non taxable territory and is engaged in providing any service to any person other than non taxable online recipient. Serial No.1 of Notification No. 10/2017 - IGST (Rate) dated 28-06-2017 is only shifting the liability to pay tax from the hands of the supplier to the recipient. It does not create any liability. We have to first see whether there is any liability and if there is a liability to pay tax on a particular transaction then the liability to pay tax on that transaction would shift from the usual supplier to the exceptional recipient as per Notification No. 10/2017-IGST (Rate) dated 28-06-2017. If the transaction itself is exempt, there is no liability on the recipient of service. Since Type 3 is not an OIDAR service, there wont be any special liability on the supplier located outside India and hence the entire transaction is exempted both in the hands of the supplier and also the recipient by virtue of Sl No. 10 of Notification No. 09/2017-IGST (R) dated 28.06.2017. Self-administered test taken by the candidates - the candidate is required to go to the test center, where an administrator will verify the identity of the candidate, validate test registration and appointment of the candidate - Whether the service provided for type 2 test (the specified service) classifies as ‘Online Information and Database Retrieval Services’? - HELD THAT:- The service provided for type 2 test classifies as OIDAR Services. Levy of IGST - type 2 test provided by the applicant does not qualify as ‘Online Information and Database Retrieval Services’ - supply of said services to non-taxable online recipients in India - HELD THAT:- Nil in view of (a) above. Type 3 test - these tests contain a mixture of multiple choice questions and analytical writing assessment section i.e. essay-based questions - whether the service provided for type 3 test (the specified service) classifies as ‘Online Information and Database Retrieval Services’? - HELD THAT:- Service provided for type 3 test does not classify as OIDAR Services. If the type 3 test provided by the applicant does not qualify as ‘Online Information and Database Retrieval Services’, whether the applicant is liable to pay integrated tax on the supply of said services to non-taxable online recipients in India? - HELD THAT:- IGST is exempted by virtue of Sl. No. 10 of Notification No. 09/2017-IGST (Rate) dated 28.06.2017.
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