Dear Experts,
We have commission income on account of contract with one party (Location outside India) who supplies IT related software to our customers ( Outside India & within India both). Sometimes we also provide development services on that software as required by customers & we charge separately to customers for that.
Please suggest regarding POS that it is Export or not and SAC to be used for that commission Income ?
Thank You !
GST and SAC Implications for Commission Income from Foreign IT Software Contracts Explained Under Section 13(8)(b) IGST Act. An individual inquired about the GST implications and Service Accounting Code (SAC) for commission income from a contract with a foreign entity supplying IT software. Amit Agrawal explained that under Section 13(8)(b) of the IGST Act, the place of supply for intermediary services is the supplier's location, which is India in this case. Therefore, the service does not qualify as an export. Agrawal believes neither IGST nor CGST & SGST apply. RangaRao Kilaru added that if commission income is received in foreign exchange, it is considered an export and not taxable. Development services are taxable if provided to Indian customers. (AI Summary)
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