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TMI Blog2018 (9) TMI 2013X X X X Extracts X X X X X X X X Extracts X X X X ..... e application dated 27-10-2017 in the prescribed form RFD-11. 2. The Adjudicating Authority sought the details regarding the nature of business operations and how it qualifies as export of services under Section 2(6) of the IGST Act. The Appellant vide letter dated 27-10-2017 filed a reply explaining the nature of activities undertaken by it. 3. In response to the above, the Adjudicating Authority passed the impugned order on 7-11-2017 rejecting the LUT application filed by the Appellant holding that the Appellant is engaged in providing marketing services to different universities, by covering events on behalf of foreign universities, for students in India seeking admission to foreign universities and that the Appellant is engaged in advertising and promotion of various courses on behalf of foreign universities. That the service provided by the appellant is completed with the grant of admission and issuance of travel visa document and it was only thereafter that the students travelled to foreign country. Since services culminated in India prior to travel abroad by the student the Appellant is working as an agent and arranging services between two persons i.e. the India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lds Recruitment Agency Agreement with various overseas Foreign Educational Universities/Institutions who seek to attract international students to study the educational courses provided by them. In terms of the said agreements OCA is engaged as the representative of the foreign Educational University/Institution for carrying out the promotion and marketing of admissions to educational courses provided by the said foreign Universities/institutions to intending Indian candidates to provide information like requirements for acceptance of course minimum level of English language proficiency educational qualification or work experience required, course content & duration, etc. which enable them to make informed decisions about studying in foreign university/institution; and to assist with the completion and submission of application forms along with requisite documents; to provide market intelligence about the recruitment of these students to the foreign university/institution. The Appellant does not appear to do any independent work but provides support services in an integrated manner to assist OCA to develop its brand in India, carry on its operations efficiently and augmenting its b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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'. Intermediaries are brokers, agents or any other person who arrange or help in the supply of goods or services or both, or securities, between two or more persons. These activities by the agents are not done for themselves but for other entity (Principal). The Principal in this case is the Foreign University who has engaged OCA as the representative of the foreign Educational University/Institution for carrying out the promotion and marketing of admissions to educational courses provided by the said foreign education Universities/institutions to intending Indian candidates. 12. Further, Section 13(8)(b) of IGST Act, 2017 defines the place of supply of services where the location of the supplier of the services or the recipient of services is outside India. 13(1) the provisions of this section shall apply to determine the place of supply of services where the location of the supplier of the services or the recipient of services is outside India. ..... (8) the place of supply of the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not fall under "Export of services", therefore, the LUT application applied was rejected on the above grounds and directions given to pay the applicable tax regularly. 14. The principal service supplied by the Appellant was facilitating recruitment of students, while course promotion was only an incidental supply. In other words, since the Appellant was working as a sub-contractor in respect of the main work assigned by the foreign university to OCA and such supply was clearly facilitating the recruitment, the course promotion and marketing services were only ancillary thereto. The Appellant was therefore supplying services as a representative of the University, on account of being engaged specifically as per the MOU with the recruitment agent OCA and not as an independent service provider, as mentioned in Para 2 of the scope of Work in the MOU between OCA and the Appellant. Since the Appellant introduces the students to OCA and doesn't supply such goods on own account, the Appellant works as an intermediary under GST Act. 15. The Appellant is aggrieved that the department has taken contradictory stands with respect to grant of LUT and bond. The appellant applied for ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Intermediary services which applies to the present case completely. "In this case, the Appellant promotes the courses of the University, finds suitable prospective students to undertake the courses, and, in accordance with University procedures and requirements, recruits and assists in the recruitment of suitable students, and hence, the Appellant is to be considered as an intermediary in terms of Section 2(13) of the IGST Act. In view of the above discussions, we are in conformity with the West Bengal Authority for Advance Ruling, that the services of the Appellant are not 'Export of Services' under the GST Act, and are eligible to tax." 18. In the present case, the services provided by the Appellant located in India to the recipient located outside India in lieu of consideration charged for the said services amounts to 'supply' of services. Now, in order to determine whether the said transaction will be Export of Services, the 'place of supply' of such services must be determined. Section 13 of IGST Act determines the place of supply of services where either the location of supplier or the location of recipient is outside India. Here, default Section 13(2) provide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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