.Clarification on Notification14/2014-ST-Reg.

[RAM SHARMA]

Dear Sir,

 

One of our consignment Agent is located in Jammu & Kashmir selling our goods on commision basis. (Non Taxable Territory).

 

Secondly, We have paid foreign expenditor regarding Advertisement/Exebition, Fees & subscription, Legal & Professional and Training Expenses etc.

 

Whether we are liable to pay service tax under reverse charges on above both cases and can cenvat taken thereon. (Notification no. 14/2014-ST, dated 11.07.2014) Please clarify.

 

Thanks & Regards

AI Summary

Place of Supply rules: intermediary classification now covers goods intermediaries, shifting reverse charge application based on provider location.
Notification amending the Place of Provision Rules expands the definition of intermediary to include intermediaries of goods, so that intermediary services for supply of goods fall under Rule 9(c) and the place of provision is the location of the service provider. This change means commission or consignment agents are treated as intermediaries and the territorial determination for application of the reverse charge mechanism shifts to the agent's location; separate reverse charge considerations apply for payments to foreign service providers and raise questions on cenvat eligibility.