TMI Blog2022 (6) TMI 755X X X X Extracts X X X X X X X X Extracts X X X X ..... his regard, it is observed that Mr Bobby Kapoor, a overseas commission agent, fall within the definition of intermediary as provided under section (2)13 of the IGST Act, 2017. Services received by applicant form the Overseas Commission Agent falls within the meaning of the term import of services or not - HELD THAT:- As per facts circumstances, services received by applicant form the Overseas Commission Agent falls within the meaning of the term import of services means the supply of any services where, (i) the supplier of service is located outside India; (ii) the recipient of service is located in India; and (iii) the place of supply of service is in India. On perusal of said legal provisions, it is found that the services can be called as import of services only when it is satisfied all the three conditions mentioned therein. On perusal of records, it is found that the conditions (i) (ii) are satisfied in as much as Mr Bobby Kapoor, supplier of service, is located within India. Now in respect of (iii) condition, section 13 of the IGST Act, 2017 specifically deals with place of supply of a service as to whether a service can be termed as import of service or o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ituted under Section 99 of the Uttarakhand Goods and Services Tax Act, 2017, within a period of 30 days from the date of service of this order. PROCEEDINGS 1. This is an application under Sub-Section (1) of Section 97 of the Central Goods Service Tax Act, 2017 and Uttarakhand State Goods Service Tax Act, 2017 (hereinafter referred to as CGST/SGST Act) and the rules made there under filed by M/s Dry Blend Foods Pvt. Ltd., Village Chandpur, P.O.-Hempur, Udham Singh Nagar, Uttarakhand-244716, (herein after referred to as the applicant ), a company registered under the Companies Act, 2013 and registered with GST1N- 05AACCD8877D1ZK under the CGST Act, 2017 read with the provisions of the UGGST Act, 2017. 2. In the application dated 11.01.2022 the applicant submitted that they are a manufacturer and carries on the business of supply of inter-alia seasonings, spices, premixes and similar food products to its customers located within and outside India. And in order to supply (export) its goods to customers located outside India, they approach foreign customers both on its own and through third party intermediaries or business facilitators whose job is to search and find c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act advance ruling can be sought by an applicant in respect of: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act, (c) Determination of time and value of supply of goods or services or both, (d) Admissibility of input tax credit of tax paid or deemed to have been paid (e) Determination of the liability to pay tax on any goods or services or both (f) Whether the applicant is required to be registered (g) Whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both within the meaning of that term. 6.2 In the present case applicant has sought advance ruling on classification and determination of the liability to pay tax on supply of services. Therefore, in terms of said Section 97(2)(a) (e) of CGST/SGST Act, 2017, the present application is hereby admitted. 7. Accordingly opportunity of personal hearing was granted to the applicant on 22.02.2022. Sh. Ashwarya Shanna, Advocate, on behalf of the applicant appeared for personal hearing on the said date and re-iterated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r has ample experience in providing intermediary services in international market and is expected to provide such services to represent the company before customers to be located by him in middle East and to provide product support, to arrange confirmed purchase orders, facilitate liquidation of bills raised by the applicant and to facilitate settlement of any concerns raised by the customers/company time to time (d) Commission is the total of a fixed component @ 4000 UD $ per month plus a variable component agreed between them, on the basis of FOB value of the consignment exported outside India; (e) The payment of commission will be made on monthly basis based on receipt of sale proceed only; (f) This understanding shall be effective for the period 01.04.2021 to 31.03.2023. 10. In the present case we are not deciding any wider question but restricting our conclusion to the facts and circumstances which were filed for our consideration in the application. Now we proceed by taking the issues one by one: 10. 2 We find that Overseas Commission Agent is covered within the definition of the term intermediary as provided under section 2(13) of the IGST Act, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions mentioned therein. On perusal of records, we find that the conditions (i) (ii) are satisfied in as much as Mr Bobby Kapoor, supplier of service, is located within India. Now in respect of (iii) condition, we find that the section 13 of the IGST Act, 2017 specifically deals with place of supply of a service as to whether a service can be termed as import of service or otherwise. On perusal of section 13 of the IGST Act, 2017 is relevant to the issue in hand which provides that the place of supply of the intermediary services would be the location of the supplier of such services (i.e. location of intermediary service provider). Thus we find that the condition (iii) is not satisfied as the place of supply of service is not in India. iii) Thus we observe that the services received by the applicant is out of the ambit of import of services in as much as the condition (iii), supra, is not satisfied in terms of section 13(8)(b) of IGST Act, 2017 as place of supply of service is out of India, since the location of Mr. Bobby Kapoor, is UAE, which is a place outside India. 10.4 The applicant is required to pay GST on RCM basis under section 5(3) of the IGST Act, 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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