AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2018 (11) TMI 959
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.... provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act' 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submission (Brief facts of the case), as reproduced verbatim, could be seen thus - FACTS OF THE CASE 1. The Applicant M/S. Vservglobal Private Limited (hereinafter referred to as 'Vserv'), is an Indian Company having its office at Mumbai. The company is incorporated to provide back office support services to overseas companies (hereinafter referred to as 'Clients'). Clients are engaged in Trading of Chemicals and other products in International Trade. Vserv will come into picture after finalization of Purchase / Sale order by a Client. Vserv will undertake following activities for and on behalf of Clients. a) Get SDF (Sales Detail Form) & PDF (Purchase Detail Form) from concerned party ....
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...., the aforesaid services rendered by the Applicant qualify as "Zero Rated Supply" in terms of Section 16 Of the Integrated Goods & Service Tax Act, 2017 for the reasons stated hereinafter. The provisions contained in Section 16 of the Act, ibid are reproduced below for ready reference. "16. Zero rated supply. - (1) "zero rated supply" means any of the following supplies of goods or services or both, namely: a) export of goods or services or both; or b) supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit. 2. Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply. 3. A registered person making zero rated supply shall be eligible to claim refund under either of the following options, namely: a) He may supply goods or services or both under bond or Letter of Undertaking, subject to such safeguards and procedure as may be prescribed, without payment of integrated tax and claim refund of unutilised input tax credit; or (b) he may supply goods o....
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....n Mumbai. Therefore, the condition that the location of service provider should be in India is met. 8. The recipient of service is located outside India- The phrase 'location of Recipient of service' is defined in Section 2(70) of the CGST Act, 2017 which reads as under. "(70) "location of the recipient of services" means, (a) Where a supply is received a place of business for which the registration has been obtained, the location of such place of business; (b) Where a supply is received a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (c) Where a supply is received at more than one establishment, whether the place of business fixed establishment, the location of the establishment most directly concerned with the receipt the supply; and (d) in absence of such places, the location of the usual place of residence of the recipient;" 8 (a). The applicant is providing services to the overseas offices of recipient of services and such services are used by recipients for their business conducted by such overseas offices. The said overseas offices of recipients....
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...., the payment for services will be received in Convertible Foreign Exchange, Thus, the said condition is also satisfied. 11. supplier & recipient not establishment of distinct person - the last condition is that the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8. The said Explanation 1 to Section 8 of Integrated Goods and Service Tax Act, 2017 reads as under: 'Explanation 1. - For the purposes of this Act, where a person has, - (i) an establishment in India and any other establishment outside India; (ii) an establishment in a State or Union territory and any other establishment outside that State or Union territory; or (iii) an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory, Then such establishments shall be treated as establishments of distinct persons. 11 (a). As already submitted the supplier of service and recipient of services are separate incorporated companies and therefore they are not merely establishment of distinct person in terms of aforesaid statutor....
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....ion. - Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply: 8. Tax liability on composite and mixed supplies. - The tax liability on a composite or a mixed supply shall be determined in the following manner, namely:- (a) a composite supply comprising two or more supplies. one of which is a principal supply, shall be treated as supply of such principal supply; and (b) a mixed supply comprising two or more supplies shall be treated as a supply of that particular supply which attracts the highest rate of tax.' 4. In the instant case, the applicant proposes to supply "Business Support Service' comprising of 'Back Office Support' and "Accounting' which is its Principle Supply. If these services also facilitate supply of goods then it is only an incidental supply to the Principle Supply. As already submitted, the applicant would come into picture only after finalization of Purchase / Sale deals by the clients. They said 'Business Support Services' would be provided by applicant to its client would be....
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....ndled in natural course of business. The relevant portion of the said Ruling is reproduced below for ready reference. "11. Applicant proposes to provide support services in relation to marketing, branding, offline marketing, oversight of quality of third party customer care Center and payment processing, on principal to principal basis These services are proposed to be provided with the sole intention of promoting the brand GoDaddy US in India and thus augmenting its business in India. Therefore, these services proposed to be provided by the applicant, would support the business interests of GoDaddy US in India. 12. It has been submitted by the applicant that services to be provided by the applicant are not peculiar only in applicant's case but are provided by various Indian entities to their overseas customers in India as a single package. Further, supporting the business of GoDaddy US in India is the main service and processing payments and oversight of services of third party Call Centers are ancillary and incidental to the provision of main service, i.e., business support service. Further, applicant would provide said services as a package and the payment ....
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.... buyers / sellers are not limited to India, but are spread across the Globe. Thus, the case of applicant is at much better footing. 11 It is correct that the Ruling of Authority for Advance Ruling is binding only in respect of Applicant. However, it certainly has persuasive value. It should also be taken into consideration that Authority for Advance Ruling under Service Tax was consisting of very senior Tax Officers and was headed by a retired Supreme Court Judge. Therefore, interpretation of law by such a senior body should be given due regard. Attention is also drawn to the relevant portion of judgment of Hon'ble Supreme Court in Columbia Sportswear Co, vs. Director of Income Tax, 2012 (283) E.L.T- 321 (S.C.) (copy enclosed). The Authority, thus, held that the advance ruling of the Authority is binding in the case of one transaction only and the parties involved in respect of that transaction and for other parties, the ruling will be of persuasive nature. The Authority, however, has clarified that this is not to say that a principle of law laid down in a case will not be followed in future. This decision of the Authority in Cyril Eugene Pereira, In ....
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.... is sought. CGST Section 97 (2)-The question, on which the advance ruling is sought under this Act, shall be in respect of, - (a) Classification of any goods or services or both; (b) Applicability of a notification issued under the provisions of this Act; (c) Determination of time and value of supply of goods or services or both; (d) Admissibility of input tax credit of tax paid or deemed to have been paid; (e) Determination of the liability to pay tax on any goods or services or both; (f) Whether applicant is required to be registered; (g) whether any particular thing done by the applicant with respect to any goods or services or both amounts to or results in a supply of goods or services or both, within the meaning of that term. The issue posed by the applicant before Advance Ruling Authority, is pertains to Zero Rated supply, it means it relates to place of supply, only above stated (a) to (g) questions are sought for Advance Ruling before Hon. Advance Ruling Authority, place of supply is not covered under the above (a) to (g), hence, my office argument is the application submitted by the applicant ....
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.... it is inside India then, it id intra state or inter-state. Firstly we have to crystallize supply of service. Section 12 - Place of supply of services where location of supplier and recipient is in India. IGST section 12 (1) the provisions of this section shall apply to determine the place of supply of services where the location of supplier of services and the location of the recipient of services is in India. IGST section 12 (2) the place of supply of services, except the services specified in sub-sections (3) to (14). (a) made to a registered person shall be the location of such person; (b) made to any person other than a registered person shall be,-- (i) the location of the recipient where the address on record exists; and (ii) the location of the supplier of serviced in other cases. Section 12 (1) - place of supply of services where location of supplier or location of recipient is within India. Section 12 (2) - place of supply of services If not prescribed in subsection (3) to (14). This section provides place of supply of services for all supplies of services where the location of supplier and re....
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....l chemical industry knowledge makes our India team to know the season, production cycle, market fluctuations, rules and regulations changes in advance and this helps ourselves to put ahead to the competitors. The M/S Vikudha Overseas Corporation Limited, has operated in India through its Branch, whatever name called Croup Company, sister concern, etc. M/S Vikudha India Trading Limited., having register office DEIANTAK PLAYA, 201, OPP. WAMAN CENTER NIAKVVANA ROAD, MAROL, ANDHERI EAST MUMBAI Mumbai City MH 400059 IN (AS per Website of ministery of Commerce), and the director of companies are Mr. Deapkumar Balkishan Adukia, and Seema Sanjau Enand Tee promoters M/S Vikudha Overseas Corporation Limited, is Vikash Balkishan Adukia, Group CEO and Mr. Deap Adukia, Group COO. Mr. Deap Balkishan Adukia is also Director of M/S Vikudha India trading Limited. From the above discussion it is clear that, the M/S Vikudha India Trading Limited, is operated through 201, Dhantak Plaza, Opp Waman Centre Makwana Road, Marol, Andheri (E), Mumbai, for M/S Vikudha Overseas Corporation Limited. The nature and scope of the works of services stated in agreement are provided by Vservglobal Pvt Ltd....
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....rritory. This section provides certain cases where the supply of goods and services Will be treated as Intra-state supply; we are here restricted up to Supply of services. Supply will be treated as intra state supply of service, if the location of supplier and place of supply of service (as provided under section 12) is in the same State or union Territory, on such supply CGST and SGST will be payable. Hence Supply of Services to be treated as Intra-state. Distinct Person- In the following cases the person will be required to take different registration as per section 25 of CGST Act and will be treated as distinct person (i.e. two different person) - Explanation 1 1. Person having establishment in India and outside India. 2. Establishment located in different states and union territory - As per section 25(5) Registration will be required to be obtained for each establishment located in different state or union territory. 3. Multiple business verticals in same state or union territory - If the person is carrying out any business through its branch or agency or representational office in any territory, it will be considered as having establishment in that terr....
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.... seen that: The applicant is registered person under GST ACT who is supplier of Services, which is a corporate entity incorporated in India and having its registered office in Mumbai. The orders for supply of said services are received in its Mumbai office and also services are executed from stated in Mumbai. The applicant has submitted sample copy of service agreement entered into between the paties,Tax invoices issued, bank statements etc. to represent the transactions effected between the parties. The relevant clauses of the agreement for the present purpose are as below: 1. This service agreement is made between the party M/S. Vikhuda Overseas Corporation Ltd. Hong Kong (Herein referred party A) and M/S. Vservglobal Pvt. Ltd. Andheri, (Herein referred party B) -This agreement is executed on 30.122017 of the office of party A situated in Hong Kong. Party A is global firm specializing in trading and distribution of chemical and Agricultural/Consumer products in different geographies. Party B is an India based corporate entity and has started its operation in the year 2017. 2. Party A is desirous of obtaining back office administrative and accounting servic....
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....office administrative and accounting support services, a Pay roll processing and maintenance of records of employees of the client satisfy all the elements of "export of services as defined under the GST Act and therefore qualify as zero rated supply as per section 16 of the IGST Act. This proposition of law is strongly opposed by the jurisdictional officer. The jurisdictional officer has collected information about M/S Vikudha Overseas Corporation Limited Hong Kong China (the client), sister concern, etc. M/S Vikudha India Trading Limited., having registered office at DHANTAK PLAZA, 201, OPP. WAMAN MAKWANA ROAD, MAROC, ANDHERI EAST Munn bai City MH 400059 IN (AS per website of Ministry of Commerce), and The Applicant of this ATA M/S Vserv Global Pvt Ltd, is private Limited company situated at 201, Dhantak Waman Center, Makwana Road Andheri (E), Mumbai-400059. The officer has information from the website of the client. He has also collected information to the promoters of the client and the sister concern. Based on this information the officer submits that all the above firms are related companies. He further has drawn a conclusion that the applicant is providing services to M/S....
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.... and procedure as may be prescribed, on payment of integrated tax and claim refund of such tax paid on goods or services or both supplied, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder. Further considering the nature of transaction covered by the application understanding of the definition export of services as defined in the IGST Act is must, we reproduce the definition here in below: Section 2(6) of the IGST Act: "export of services" means the supply of any service when,-- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation I in section 8; In the course of final hearing a reasonable doubt was raised by the members whether the applicant is an 'intermediary' as defined under the act. On this issue the contention made by ....
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....SOB (Shipping on Board) with supplier and forwarder • Log it in Excel Order Sheet - ETD -ETA(Estimated Date of Arrival -Estimated date of Departure) • Get draft BL (Bill of Lading) prior to sailing • Follow up for full shipping documents with supplier • Raise payment request in VOSS for supplier for balance or final payment • Send payment request to Group Company for supplier for balance or final payment. • Arrange inspection certificates if applicable • Raise payment request for freight and inspection charges as applicable • Arrange to send originals to Hong Kong • Follow up for Originals sent to Customer from Group Company • Notify ETA - reminder to Customer (ETA -Estimated time of arrival) • Troubleshooting • Applicants commits itself carrying out services in accordance with the instructions of the client. • Applicant commits not to disclose business dealing of client to any third party / parties • Applicant and client commit not to represent each other before a third party as agent and principal of ....