Export of service

[Guest]

Dear Sir ,

I am working as a consultant in Bangalore (india) for a european company which sells goods to Indian customers. My role is to generate enquiries , forward the quotations received from european company to Indian customers, particiapte in techno-commercial negotiations and pass on the orders to european company . The customers release order on european company . I raise a service invoice to the european company and I get paid in Euro. Please advice whether my service is exempted from service tax under ' export of service'

Thanks.

Monappa

[Nitesh Jain]

Place of supply of your service would be location of Supplier in terms of provision of Sec. 13(8)(b) of IGST Act, 2017..Accordingly, the said service would not qualify as export of services as per sec. 2(6) of IGST Act, 2017. Hence, CGST & SGST would be payable...In case aggregate turnover exceeds ₹ 20,00,000/- in a year.

[KASTURI SETHI]

You are providing intermediary services and covered under Section 13(8)(b) of the IGST Act. Place of supply is in India and you do not conform to the definition of 'export of service' under Section 2(6) of IGST Act. One parameter (iii) of sub-section 6 of Section 2 is not qualified. All conditions mentioned under Section 2(6) of IGST Act must be qualified.

AI Summary

Consultant's Services Not Exempt from Service Tax Under IGST Act; Considered Intermediary, Taxable in India. A consultant in Bangalore working for a European company inquires about service tax exemption under 'export of service.' The consultant facilitates transactions between the European company and Indian customers, invoicing the European company in Euros. Two responses clarify that the services are considered intermediary services under Section 13(8)(b) of the IGST Act, 2017, with the place of supply in India. Consequently, the services do not qualify as 'export of services' under Section 2(6) of the IGST Act, and Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) are applicable if turnover exceeds 20,00,000 annually.