export of service or intermediary services- reg

[Nikhil kumar]

a logistics company providing door to door logistics within the india and outside India. they entered an agreement where they had arrange the transportation facility from company in india to port  and clerance and transportation  facility at port to send the goods to outside India. for this works, company receives foregin exchage. Recepient is outside India. Whether the service renderd by the company will be treated as EXPORT OF SERVICE. 

[YAGAY andSUN]

Yes, the service rendered by the logistics company shall be treated as Export of Service under Section 2(6) of the Integrated Goods and Services Tax Act, 2017, provided the following conditions are fulfilled:

1. The supplier of service is located in India;

2. The recipient of service is located outside India;

3. The place of supply of service is outside India;

4. The payment for such service has been received by the supplier in convertible foreign exchange; and

5. The supplier and recipient are not merely establishments of a distinct person under Explanation 1 to Section 8.

In the instant case, since the recipient is located outside India, consideration is received in foreign exchange, and the place of supply, being the location of the recipient under Section 13 of the IGST Act, is outside India, the services qualify as Export of Services and shall be treated as a zero-rated supply under Section 16 of the IGST Act, 2017.

AI Summary

Export of Service treated as zero-rated supply when supplier in India, recipient abroad and payment received in foreign exchange. Export of service requires supplier located in India, recipient located outside India, place of supply outside India, payment received in convertible foreign exchange, and that supplier and recipient are not merely establishments of a distinct person; where these conditions are satisfied for door-to-door logistics covering inland transport to port, clearance and onward shipment, the services qualify as export of service and are treated as a zero-rated supply.