TaxTMI 
TaxTMI 
A (India) is subcontractor for B (USA) and provides software implementation/development services to C (India). A bills B and B bills C(India). Staff from A carry out services either in their offices or in C’s office. Staff of A are deputed on projects being executed by A’s subsidiary in the US. The staff spend 5-10% of their time in US and rest is done from India. Is this export of service? Does it become back office support services and therefore covered by the AAR ruling and liable to GST?
Export of Service
16 Mar 2019 
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Export of services: agency vs principal characterization determines place of supply and export treatment under IGST.
Qualification as export of services depends on whether the Indian supplier is an intermediary (agent) - in which case section 13(8) IGST Act locates supply in India and export treatment is precluded - or the supplier acts in its own capacity, in which case section 13(2) read with section 13(3) and the conditions in section 2(6) IGST Act determine place of supply and potential export status. For software services, place of supply is normally the location of the recipient if export conditions are met. (AI Summary)
Qualification as export of services depends on whether the Indian supplier is an intermediary (agent) - in which case section 13(8) IGST Act locates supply in India and export treatment is precluded - or the supplier acts in its own capacity, in which case section 13(2) read with section 13(3) and the conditions in section 2(6) IGST Act determine place of supply and potential export status. For software services, place of supply is normally the location of the recipient if export conditions are met. (AI Summary)