Place of supply of advertising services: principal-to-principal supplies to foreign clients qualify as exports, agent services treated differently. Where an Indian advertising company contracts and pays media owners in its own name, supplies a comprehensive advertising service to a foreign client and invoices the foreign client in foreign exchange, the agency acts on its own account (not as an intermediary) and the place of supply is the location of the recipient (the foreign client) outside India, making the service export of services subject to export conditions. Conversely, where the agency merely facilitates a direct contract between foreign client and media owner, it is an intermediary and the place of supply of its facilitation services is the supplier's location in India.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Place of supply of advertising services: principal-to-principal supplies to foreign clients qualify as exports, agent services treated differently.
Where an Indian advertising company contracts and pays media owners in its own name, supplies a comprehensive advertising service to a foreign client and invoices the foreign client in foreign exchange, the agency acts on its own account (not as an intermediary) and the place of supply is the location of the recipient (the foreign client) outside India, making the service export of services subject to export conditions. Conversely, where the agency merely facilitates a direct contract between foreign client and media owner, it is an intermediary and the place of supply of its facilitation services is the supplier's location in India.
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