Composite printing service in India was taxable, as delivery in India defeated export-of-service treatment.
A composite printing contract was treated as a taxable supply in India rather than an export of service because the printing element was predominant and the printed booklets had no independent utility apart from the supplied content. For place-of-supply purposes, the statutory definition of "recipient" was applied so that the person liable to pay consideration and the person to whom the supply was made were not treated as severable; on that basis, the recipient was regarded as located in India. As delivery of the printed booklets was made in India, the place of supply was India and the transaction did not meet the conditions for export of services. The supply was therefore taxable under the applicable rate notifications.
Issues: Whether the applicant's activity of printing booklets using content supplied by a foreign buyer, with delivery made to destinations in India and consideration received in foreign currency, constituted export of service or a taxable composite printing service in India.
Analysis: The applicable framework treated the transaction as a composite supply in which the printing element was predominant and the printed booklets had no independent utility apart from carrying the printed matter. The Authority relied on the statutory definition of "recipient" to hold that, where consideration is payable, the person liable to pay it and the person to whom the supply is made are not severable for this purpose. On that basis, the recipient was treated as being located in India because the supply was made and delivered to persons in India. The place of supply followed the place where the printed booklets were delivered, and the transaction therefore did not satisfy the conditions of export of services.
Conclusion: The supply was held to be a taxable composite printing service in India and not an export of service.
Final Conclusion: The ruling denied export treatment to the transaction and subjected the composite printing supply to tax under the applicable rate notifications.
Ratio Decidendi: In a composite printing contract where the printed goods have no independent utility apart from the printed content, the recipient for place-of-supply purposes is determined by the statutory definition tied to liability to pay consideration, and delivery in India makes the supply taxable rather than an export of service.
TaxTMI 
AI Drafter ✕
TaxTMI 
