Place of provision of services

[Madhavan iyengar]

A Company in India has received order to develop a proto type from a foreign vendor

The Indian Company uses its own material and develops the prototype at its plant in india.

Foreign vendor agrees to compensate for eng services work done on prototype by indian company

Indian company raises invoice for engineering services on Foreign vendor in USD

Can the Invoice raised for engineering services qualify as export of services ( since all conditions will be satisfied ) whether there can be any issue on POPS

AI Summary

Debate on whether invoicing foreign vendor in USD for prototype development qualifies as export of services under GST. An Indian company received an order from a foreign vendor to develop a prototype using its own materials. The foreign vendor agreed to compensate for engineering services, and the Indian company invoiced them in USD. The discussion focuses on whether this transaction qualifies as an export of services under GST, considering the place of supply (POS) is crucial. One expert argues the transaction is an export since the POS is outside India, while another suggests potential litigation as services were performed in India. The debate highlights the complexities of GST law regarding export services and the importance of interpreting the place of provision.