TaxTMI 
TaxTMI 
2019 (10) TMI 572
X X X X Extracts X X X X
X X X X Extracts X X X X
....2Q1ZY, have filed an application for Advance Ruling under Section 97 of CGST Act, 2017 & KGST Act, 2017 read with Rule 104 of CGST Rules 2017 & KGST Rules 2017, in form GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The Applicant is a Private Limited Company and are registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: Whether they need to charge GST on the Portfolio Management Services provided to Non-resident client, where the client pays fee in foreign currency from their overseas account to the account of the Portfolio manager? 3. The applicant furnishes some facts relevant to the stated activity: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re governed by Section 13 of the IGST Act. e. The applicant further states that as per the default or principal rule of place of supply of cross border services, the location of the recipient of service is the place of supply. However, in case the location of recipient of service is not available in the ordinary course of business, the place of supply shall be the location of the supplier of service [section 13(2) of the IGST Act]. In this case, the place of supply of the services provided by the Portfolio Manager to a non-resident client shall be the location of the recipient of services, that is outside India. f. The applicant states that the location of the service provider and the location of the service recipient is v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ents shall be outside of India ii. Also since the location of recipient of services is outside India and the Non-resident clients are paying the portfolio management fees in foreign currency in convertible foreign exchange from their overseas account to the account of the Portfolio Manager, the place of supply of service is outside India. The above is subject to providing services under bond or Letter of Undertaking and subject to such conditions, safeguards and procedure as prescribed in notification no. 37/ _2017 and circular 8/2017 in this regard, without payment of IGST. PERSONAL HEARING / PROCEEDINGS HELD ON 03.04.2018. 4. Sri Gururaj, Chartered Accountant and duly authorised representative of the applicant appeared f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....) 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 1 in section 8; It is clearly evident from the above that the place of supply of the services must be outside India for the said services to be considered as "export of services". Therefore determination of place of supply is very crucial in the instant case so as to decide whether the provision of said services amount to export of services or not. Now, t....