TMI Blog2020 (3) TMI 894X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices considered as Intermediary Service? - HELD THAT:- In the instant case the applicant acts as an agent, in terms of the aforesaid agreements, to the parent company Fom Industrie s.r.l, Italy as well as M/s. Universal Pack s.r.l, Italy beyond doubt. Therefore the supply of services of the applicant under these transactions squarely falls under the Intermediary services and thereby the supply is in the taxable territory and thus the said supply is taxable, under forward charge mechanism. Is IGST paid under RCM eligible for ITC? - HELD THAT:- The levy of IGST is only on the inter-state supplies and importation of goods/services is treated as inter-state supply, in terms of Section 7(2)/7(4) of the IGST Act 2017 respectively. The IGST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 2017 and the KGST Act 2017. 2. The Applicant is a private limited company, registered under the provisions of the goods and Services Act, 2017. The applicant states that they are importers Traders of Aluminium working machinery; they import machines from their parent company in Italy and market the same in domestic area; they have only one office in India, located at Peenya, Bangalore to cater across the country; they are engaged in Sales, Service Admn. Personnel to run the business. The applicant had not furnished any relevant facts having a bearing on the questions raised in the instant application and also not furnished their interpretation of law i.e. their view point on issues raised in the questions with the application. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the parent company in Italy. d. The applicant stocks sells the small and medium category of machines, that have been imported, to Indian customers. e. The applicant also books the orders for bigger machines which are advanced Automated CNC Machines, which are directly supplied/ shipped to the identified Indian customers by the parent company in Italy. The applicant is not involved in import of the said machines. f. The applicant gets sales commission [marketing fee as per clause envisaged in the agreement by the parental company for booking of the direct supply orders. 6. FINDINGS DISCUSSION: 6.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arge Mechanism is nothing but shifting the tax liability on to the receiver. In the instant case the applicant is, undoubtedly, a supplier and hence the question of levy of IGST on export of services, under RCM , does not arise. 6.5 The second question reads as ls our services considered as Intermediary Services ? . The instant question is in relation to the second and third type of business activities. We proceed to examine these business activities. a. The applicant, as an agent of their parent company M/s. Fom Industrie s.r.l, Italy, books the orders from the Indian Customers for Advanced Automated CNC Machines, which are supplied directly to the Indian Customers by their parent company in Italy. The applicant gets sales c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed such as letterhead, business cards, website etc. Therefore the applicant is undoubtedly an agent of the supplier under this type of transactions. 6.6 Now we proceed to examine whether the aforesaid business activities get covered under Intermediary Services or not. As per 2(13) of the IGST Act, 2017, intermediary means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both, or securities on his own account. Further, as per Section 13 (8) (b) of the IGST Act 2017, the place of supply of intermediary services shall be the location of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from their customers the same is absorbed as cost and thus impacts on transaction value . Both these questions are not covered under the issues prescribed under Section 97(2) of the CGST Act 2017, on which the questions can be raised to seek advance ruling. Therefore no ruling is required to be given on these questions. 7. In view of the foregoing, we pass the following RULING 1. Export of services by the applicant, if any, do not attract IGST under RCM, as the applicant becomes supplier for the said services. 2. The services being provided by the applicant are squarely covered under the Intermediary Services and accordingly are taxable under forward charge mechanism, in the hands of the applicant. 3. The payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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