TaxTMI 
TaxTMI 
2019 (10) TMI 788
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....stated to be an employee of an overseas company engaged in business of manufacturing and selling various categories of distribution transformer components and accessories and is not registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following questions: a) Whether the services provided by the applicant to M/s H-J Family of Companies amount to or result in a supply of services or both, within the meaning of that term? b) If the above question is answered in the affirmative: i. What is the classification of the services rendered by Mr. Santosh to H-J Family of Companies? ii. Is Mr. Santosh required to be registered under the CGST Act, 2017? iii. What is the liability of Mr. Santosh to pay tax on the services rendered by him to H-J Family of Companies? iv. What is the time and value of the supply of services rendered by Mr. Santosh to H-J Family of Companies? 3. The applicant furnishes some facts relevant to the stated activity: a. H-J Family of Companies (hereinafter called the "Company") having its office in the United States, is engaged in the business of manufacturing and selling various categories of distrib....
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....e applicant's knowledge. 4. The applicant states that in terms of Section 7(2) (a) read with Entry 1 of the Schedule III of the Central Goods and Services Tax Act, 2017, the services by an employee to an employer in the course of or in relation to his employment is not a supply of services within the meaning of that term. Due to the fact that Sri Rajendran Santosh performs his services in exchange of a lump-sum monthly compensation in a manner specified by the employer (H-J Family of Companies) and his activities are performed under the direction, control and supervision of the employer, the services must be classified under Entry 1 of Schedule III of the CGST Act, 2017. 5. The applicant also submits that the applicant does not have independent clients in the Indian and Middle East markets. The applicant does not have the power to conclude contracts between his employer and the said clients, nor does he the power to conclude such contracts in his own name. The applicant does not operate as an independent business entity, since he performs his services Rajendran Santosh under the complete direction, control and supervision of the said employer. Hence the applicant is not performin....
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.... other services in India directly or indirectly, with or without consideration, and does not have significant commitment powers except those required for the normal functioning of the office, then the liaison office is not liable to get itself registered under GST. 9. FINDINGS & DISCUSSION: 9.1 We have considered the submissions made by the Applicant in their application for advance ruling as well as the submissions made by Ms. Rupashri Khatri, Advocate and authorised representative of the applicant during the personal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 9.2 At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act are the same except for certain 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 provisions under the KGST Act. 9.3 The Applicant seeks advance ruling in respect of the questions mentioned at para 2 supra. The submissions of the applicant are examined and observed as under: (a) The applicant has produced a letter of the offer for ....
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....wed by the Company. There is a fixed remuneration paid on a monthly basis for the services provided. Clause (13) of Section 2 of the Integrated Goods and Services Tax Act, 2017 defines an "intermediary" as under: "(13) "intermediary" means a broker, an agent or any other person, by whatever name called, who arranges or facilitates the supply of goods or services or both, or securities, between two or more persons, but does not include a person who supplies such goods or services or both or securities on his own account In the instant case, the applicant is making presentation before the prospective clients and facilitates the supply of goods by the company for whom he is providing services and he does not supply such goods on his own account and hence squarely falls under the category of "intermediary" as per section 2(13) of the IGST Act, 2017. Clause (120) of the section 2 of the Central Goods and Services Tax Act, 2017 states as under "(120) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, the Union Territory Goods and Services Tax Act and the Goods and Services Tax (Compensation to States) Act shall have the....