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2022 (7) TMI 410 - AUTHORITY FOR ADVANCE RULINGS, KARNATAKATaxability - transaction of the Applicant of providing space on its web-portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Limited for a consideration - correct classification of the services provided and rate of tax on the transaction of the Applicant of providing space on its web-portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Limited - HELD THAT:- The services provided by the applicant to M/s Lenzing is that of rendering “Sale of internet Advertising Space (except on commission)” and is charging a fixed rate and not a commission for providing such space. Hence the same is classified under six-digit SAC 998365 under the Heading 9983 which reads “Other professional, technical and business services” - The services provided by the applicant are covered under the Heading 9983 which reads “Other professional, technical and business services” and the same is taxable as per SI.No.21 of Notification No. 11/2017- Central Tax (Rate) dated: 28.06.2017. The applicant, i.e the supplier of services M/s Myntra Designs Pvt Ltd is located in India, the recipient of services, M/s Lenzing Singapore Pte Ltd. is located outside India, and the consideration is received in convertible foreign exchange and the Applicant and the overseas entity are two separate legal entities as per the agreement. The only issue to be decided is whether place of supply is outside India or not and this is outside the jurisdiction of this Authority. Unless this is decided, the question, Whether the transaction of the Applicant of providing space on its web-portal for advertisements provided by a foreign entity i.e., Lenzing Singapore Pte Ltd. for a consideration, is taxable? canriot be answered.
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