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TMI Blog2021 (1) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... with the parties situated outside India wherein it is getting certain amount as commission in the capacity of Agent/ intermediary from the foreign entities for the Supply of their machinery. 3. The applicant submitted the copy of agency agreement held between the applicant and the manufacturer and seller of textile sizing/warping equipment M/s. Ukil Machinery Co., Ltd., Republic of Korea, Korea. The salient features of the said agency agreement are as under : Agency Agreement This agreement, made by and between UKIL Machinery Co. Ltd., a corporation organized under the laws of Republic of Korea, located and doing business in the city of Pusan, hereafter called the "company" and "Sagar Agencies Pvt. Ltd." having its principal office in Ahmedabad, India, hereafter referred to as "Agent". WITNESSETH Whereas, the "company" is a manufacturer and seller of textile sizing/warping equipment and desires to secure the services of an agent to promote and negotiate sales of said equipment for the territory described below; and whereas "Agent" is desirous of securing the right to promote and negotiate sales of said "Company's' equipment, it is mutually agreed between said "Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the 'company" shall forward to "Agent" with dispatch, al1 inquiries received from the territory herein agreed, for Agent's, attention and handling, along with copy of any acknowledgment the company, may deem proper under the circumstances to forward to the inquirer, and shall make available to "Agent" such sales, products, and technical information and estimates, specifications, and proposals where required, as may be advantageous to "Agent" in handling the inquiry intelligently and successfully. 10. It is understood that the "company" shall forward to "Agent" with dispatch, all inquiries received from the territory herein "agreed", for "Agent's" attention and handling, along with copy of any acknowledgment the "Company", may deem proper under the circumstances to forward to the inquirer, and shall make available to "Agent" such sales, products, and technical information and estimates, specifications, and proposals where required, as may be advantageous to "Agent" in handling the inquiry intelligently and successfully. 11. All inquiries received by "Agent" from points or sources outside the territory hereunder, shall be dispatched at once to the "Company" for attention an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant and agreement entered with the company as well as the arguments and discussions made by the representative of the applicant during the course of personal hearing, it appears that the services provided by the applicant are in the nature of services of commission agents or commodity brokers who negotiate between buyers and sellers as a facilitator for the supply of goods for which they are paid a fee or commission. The said service can also be called as 'intermediary services'. 9. In simple terms 'intermediary' can be explained as a firm or a person, etc. who acts as a link between parties for the conduction of business, etc. We find from the submission and terms & condition of the agreement that the applicant is providing services as an intermediary. The facts also reveal likewise and therefore we first take up the definition of an "intermediary" as per GST laws. 10. The term 'Intermediary' is defined in Section 2(13) of IGST Act, 2017 as:- '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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... location where the services are actually performed, namely: - (a) services supplied in respect of goods which are required to be made physically available by the recipient of services to the supplier of services, or to a person acting on behalf of the supplier of services in order to provide the services: Provided that when such services are provided from a remote location by way of electronic means, the place of supply shall be the location where goods are situated at the time of supply of services: Provided further that nothing contained in this clause shall apply in the case of services supplied in respect of goods which are temporarily imported into India for repairs and are exported after repairs without being put to any other use in India, than that which is required for such repairs; (b) services supplied to an individual, represented either as the recipient of services or a person acting on behalf of the recipient, which require the physical presence of the recipient or the person acting on his behalf, with the supplier for the supply of services. (4) The place of supply of services supplied directly in relation to an immovable property, including services supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient of services provided that where the location of the recipient of services is not available in the ordinary course of business, the place of supply shall be the location of the supplier of services. In the instant case, the supplier of service is the applicant and the service recipient is M/s. UKIL Machinery Co. Ltd, Republic of Korea. We find that the services provided by the applicant i.e. 'intermediary services' appears at Sub-Section (8)(b) of Section 13. Also, sub-section (8) clearly mentions that the place of supply in respect of the services described under the said sub-section shall be the location of the supplier of services. Further, the supplier in the instant case is the applicant and the location of the said supplier is in Gujarat. Now, since the location of the applicant, who is supplier of services, is in Gujarat and both the supplier of service as well as the place of supply of service is in Gujarat, the supply of services would be considered akin to intra-state supply of services and would be liable to CGST and SGST as per the provisions of Section 9(1) of the CGST Act, 2017. Section 9(1) of CGST Act, 2017 is read as under : 9. (1) Subject to the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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