Export of services

[LALIT MUNOYAT]

An Indian citizen is retained by a company in Italy to explore market potential in India and abroad also. He is paid euro 5000/- per month in convertible foreign exchange. He negotiates with potential customers and if, successful, the company directly supplies the product to the customer. Whether the negotiations are successful or aborted, he will get his remuneration from the company. He is not concerned with the supply or its payment by the customer. He is directly concerned with the Italy company. In a way he is providing services to the company in Italy and getting the consideration from Italy in convertible foreign exchange. Is this a case of export of services? Clarification is highly solicited.

AI Summary

Indian Citizen's Service for Italian Company Debated as Export Under GST; Tax Implications Explored An Indian citizen is engaged by an Italian company to explore market potential in India and abroad, receiving a monthly payment in euros. The discussion revolves around whether this constitutes an export of services under GST. One opinion suggests that services provided within India are taxable, while those abroad are considered exports and attract zero GST. Another view classifies the activity as 'intermediary service,' making it taxable in India. If the individual is an employee, the service is GST-exempt. The original query clarifies the individual is not an employee, suggesting the service meets the criteria for export, potentially avoiding GST but increasing income tax liability.