TMI BlogGST export of servicesX X X X Extracts X X X X X X X X Extracts X X X X ..... Under export of service rules it is mentioned that it wont qualify as export if: the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8 ; meaning of above ie if indian company exports to its related unit in foreign country then the unit in foreign country should not be a mere branch it should be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a registered entity in the foreign country ie in America the word INC is used in germany Gmbh is used which signifies that they are separate regd entities in foreign countries so that benefit of export is not denied Experts please clarify on this issue. - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = You mean - Explanation 1 in Section 8 - IGST Act ? - Reply By KASTURI SETHI - The Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply = Acronyms namely, 'INC' and ' GMBH' would not suffice to prove the distinct legal entity for the purpose of claiming export benefits.The department would not accept such acronyms for export benefits. This is my observation. - Reply By Madhavan iyengar - The Reply = Kasturi sir In this case every export of services to a related person abroad would be questionable. or the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of export is denied where invoicing is done to a branch or liason office abroad which has no legal existence ie not regd as a company / firm in the overseas country In foreign countries they have their own mechanism to determine the nature of legal entity in america INC would signify that the company is a incorporated entity. akin to india where we say pvt ltd/ ltd co / LLP etc What is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the intention of law is it that exports of services have to be made only to other than related parties. - Reply By KASTURI SETHI - The Reply = Dear Sir, You need the shelter of case law otherwise the Department may not allow. Case law which has been accepted by the Department . Risk is involved. The Department is very serious in allowing such benefits. You may win in CESTAT. - R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eply By KASTURI SETHI - The Reply = Taxability - Interpretation of taxing statute imposing tax liability on assessee - Burden to prove tax liability of an assessee is on Revenue - In case of any ambiguity in a taxing statute imposing tax liability on the assessee, benefit of doubt to be given to assessee. [para 43] 2018 (361) E.L.T. 577 (S.C.) = 2018 (7) TMI 1826 - SUPREME COURT COMMIS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SIONER OF CUS. (IMPORT), MUMBAI Vs. DILIP KUMAR COMPANY - Reply By KASTURI SETHI - The Reply = The department can ask for any document from the exporter to establish distinct legal entity as the burden of proof is cast upon the person who wants to avail exemption as per judgement of the Supreme Court. - GST export of services - Query Started By: - Madhavan iyengar Dated:- 6-7-2019 Goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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