Provisional attachment under Prevention of Money Laundering Act requires exhaustion of statutory remedies; impugned order set aside, appeal to tribuna...
Restoration of property under Prevention of Money Laundering Act after attachment dispute rendered academic; possession directed to successful resolut...
Goods Transport Agency services via e commerce portals: consignment note creates custody and liability and enables exemption for unregistered recipien...
Reverse charge and assignment of royalty collection: exemption for excess royalty collectors subject to reconciliation; leaseholders remain liable und...
The note treats a non compete fee for agreeing to refrain from competing as a taxable 'supply of services' under Schedule II(5)(e) and Section 9(1) CGST; where the supplier is in India and the recipient is located abroad, payment is in foreign exchange and the establishments are not merely distinct persons, the transaction meets the five conditions of export under Section 2(6) IGST and qualifies as export of services and zero rated. The authority records that 98.57% of the fee is export (zero rated) while 1.43% remains taxable as inter state or intra state supply; IGST or CGST+state GST may apply as appropriate.
The note treats a non compete fee for agreeing to refrain from competing as a taxable 'supply of services' under Schedule II(5)(e) and Section 9(1) CGST; where the supplier is in India and the recipient is located abroad, payment is in foreign exchange and the establishments are not merely distinct persons, the transaction meets the five conditions of export under Section 2(6) IGST and qualifies as export of services and zero rated. The authority records that 98.57% of the fee is export (zero rated) while 1.43% remains taxable as inter state or intra state supply; IGST or CGST+state GST may apply as appropriate.
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