Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

2018 (4) TMI 808

sities abroad is to be considered “export” within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, and, therefore, a zero-rated supply under the CGST / WBGST Act 2017? - Held that: - in the case of Export of Services all the conditions as laid down under Section 2(6) of IGST Act 2017 is to be followed in totality without any violation, and that there is no scope of partial compliance of the conditions laid down therein. - The Applicant is facilitating recruitment / enrolment of students to foreign Universities. Promotional service is incidental and ancillary to the above principal supply and the Applicant is paid consideration in the form of Commission, based on performance in recruiting students, as a per .....

X X X X X X X

Full Text of the Document

X X X X X X X

ies abroad is to be considered export within the meaning of Section 2(6) of the Integrated Goods and Services Act, 2017, (hereinafter referred to as the IGST Act ), and, therefore, a zero-rated supply under the CGST / WBGST Act 2017 (hereinafter referred to as GST Act ). 2. The Applicant submits that it is providing the above services to the foreign universities, for which it receives consideration in convertible foreign exchange. The service recipient is located outside India and is not an establishment of a distinct person in accordance with Explanation 1 to section 8 of the IGST Act. The place of supply of the services is outside India in terms of section 13(2) of the IGST Act. The supply of services by the applicant should, therefore, b .....

X X X X X X X

Full Text of the Document

X X X X X X X

rmediary service to the foreign universities. Had there been such a dispute, this Authority would rather not provide a ruling on this issue at all. This Authority enters the question of whether the service provided by the applicant is classifiable as export from the limited angle of probing whether the applicant is providing an intermediary service. 6. The Applicant also declares that the question raised in the Application is not pending or decided in any proceeding under any provision of the Acts referred to above. The Application is, therefore, admitted. 7. The Applicant is stated to be engaged in Overseas Education Advisory whereby the various courses of foreign Universities are promoted in India among prospective students. The Applicant .....

X X X X X X X

Full Text of the Document

X X X X X X X

he place of supply should be the location of the recipient outside India in terms of Section 13(2) of the IGST Act. 9. The Applicant submits at the time of Personal Hearing a copy of the Agreement with the Australian Catholic University (hereinafter referred to as the Agreement ), in support of its argument. Since this Agreement with a specific University, namely, Australian Catholic University, has been submitted by the Applicant to further its arguments, the Agreement may be considered as the prototype of all Agreements made with the various Universities abroad and all discussions regarding the Agreement is to be taken as relevant to and applicable for all the Agreements entered into by the Applicant with the Universities abroad. 10. The .....

X X X X X X X

Full Text of the Document

X X X X X X X

ion Clause 1.1). Under Clause 2 of the Background forming part of the Agreement, it is stated that the University engages Education Agent to be its representative in the territory and on the terms set out in the Agreement. However, it is clarified under Clause 2.3 (b) that the Education Agent, engaged by the University is an independent contractor, is not an agent of the university. The two clauses are clearly contradictory. 14. Clause 2.3 of the Agreement is stated below for ready reference: 2.3 The Education Agent is engaged as an independent contractor by the University. For the avoidance of doubt the relationship between the Education Agent engaged under this agreement under University; a. is not one of employer and employee; and b. is .....

X X X X X X X

Full Text of the Document

X X X X X X X

incidental to the above principal supply. While providing the above service the applicant is subject to audit by the University under clause 9.2 of the Agreement, which includes fulfilling recruitment targets. The University will review the Applicant s performance under Clause 9.4, especially with respect to recruitment targets achieved. The Applicant cannot claim any consideration for its promotional activity unless the students get enrolled through it. If the students get enrolled directly by the University through distant education or online services, the Applicant will not be paid any consideration whether or not it has provided any promotional service (Clause 8.3 of the Agreement). In fact, the Applicant is not allowed to undertake an .....

X X X X X X X

Full Text of the Document

X X X X X X X

he students enrolled through the Applicant. The Applicant, therefore, represents the University in the territory of India and acts as its recruitment agent. In fact, Clause 2.1 of the Background forming part of the Agreement clearly says, The University engages the Education Agent to be its representative to perform the Services from the commencement date in the Territory and on the terms set out in this Agreement until the Expiry date. It is, therefore, clear that whatever services the applicant provisions are provided only as a representative of the University and not as an independent service provider. 19. Being an intermediary service provider, the place of the Applicant s supply shall be determined under section 13(8)(b) of the IGST Ac .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||