SAC Code & POS required for Commission Income

[Ashiesh Prremji]

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 !

AI Summary

Place of supply determines export status: intermediary services with supplier in India are not export of service under IGST rules.
Place of supply for intermediary services is the supplier's location under Section 13(8)(b) IGST; where the supplier is in India and the payer is outside India, the place of supply is India and the service does not qualify as export. Commentators differ on tax consequences: one contends the supply may be non-taxable under both IGST and CGST/SGST; another treats receipts in foreign exchange to recipients abroad as export (not taxable) while services to Indian recipients remain taxable.