Place of supply for advertising services: supplier acting on its own account leads to export classification when recipient is abroad. Clarification: where an Indian advertising company contracts comprehensively with a foreign client, procures media space from media owners on its own account, invoices the foreign client and receives payment in foreign exchange, the company is a principal (not an intermediary), the recipient is the foreign client located outside India, and the place of supply is the recipient's location, making the service an export of services; by contrast, if the Indian company merely facilitates a direct contract between foreign client and media owner, it is an intermediary and place of supply for its facilitation services is the supplier's location.
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Provisions expressly mentioned in the judgment/order text.
Place of supply for advertising services: supplier acting on its own account leads to export classification when recipient is abroad.
Clarification: where an Indian advertising company contracts comprehensively with a foreign client, procures media space from media owners on its own account, invoices the foreign client and receives payment in foreign exchange, the company is a principal (not an intermediary), the recipient is the foreign client located outside India, and the place of supply is the recipient's location, making the service an export of services; by contrast, if the Indian company merely facilitates a direct contract between foreign client and media owner, it is an intermediary and place of supply for its facilitation services is the supplier's location.
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