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- Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
Issue Favourable to Tax Payer ?:- no
Held - In response to the third question as to whether the supply would fulfill the condition of export of service. To which MAAR held that the transaction between IIUL and the appellant doesn't fulfill the condition of export of service as per the provisions of Section 2(6) of IGST Act. The MAAR held that the place of supply of service in the present case is outside India, hence, doesn't fulfill the conditio.....
Issue Favourable to Tax Payer ?:- yes
Held - Although the Adjudicating Authority has interpreted the Agreement, we find that there is insufficient analysis of the actual work performed by the petitioner. There is no material to relate the remuneration to the sales figure on empirical basis. The Adjudicating Authority has merely referred to a portion of Clause 2.4 of the Agreement, which provides that Netgear Technologies (India) Pvt. Ltd. would perform reconciliation of that yearâ.....
Issue Favourable to Tax Payer ?:- yes
Held - Rendering service on behalf of another person does not render the service provider an intermediary. These issues are covered by the recent decision of this Court in M/s Ernst and Young Limited v. Additional Commissioner, CGST Appeals-II, Delhi & Anr. (supra) and M/s Ohmi Industries Asia Private Limited v. Assistant Commissioner, CGST.
However, it is essential that the principal service, the supplier of such services, and the s.....
Issue Favourable to Tax Payer ?:- yes
Held - An intermediary is a person who arranges or facilitates provision of the main service between two or more persons. The respondent is not involved in the arrangement or facilitation of the supply of service. In fact, the respondent had entered into agreement with Jindal LLC for providing telecommunication services and other services on a principal to principal basis. The telecommunication service and other services provided by the respon.....
Issue Favourable to Tax Payer ?:- no
Held - As per Section 13 (2), the place of supply of services except the services specified in sub-sections (3) to (13) shall be the location of the recipient of services.
Section 13 (3) (a) provides that the place of supply of the following services shall be the location where the services are actually performed, namely:-
Issue Favourable to Tax Payer ?:- no
Held - Admittedly, Petitioner is an Intermediary (as defined in section 2(13) ) above rendering Intermediary Services (as provided for in section 13(8)(b) above) to its overseas customers based on which the overseas customers export their goods to importers in India for which Petitioner receives commission.
There is no discrimination between Petitioner’s case and other exporter of services. The intermediary services rendered by Petitio.....
- Whether reimbursement of expenses is leviable to GST?
- Whether input tax credit is admissible if invoice/debit note does not appear in Form GSTR-2A/2B or tax is not paid by supplier ?
- Whether marketing and sales promotion services to customers located outside India is intermediary or export of services ?
- Whether order / show cause notice is valid if passed without pre-show cause notice consultation or GST DRC-01 (summary SCN) or GST DRC-01A (tax intimation notice) ?
- Whether recovery proceedings can be initiated if assessee is willing to file an appeal ?
- Whether input tax credit can be transferred to the transferee entity in case of an inter-state business transfer ?
- Whether interest is payable for the period during which the reply to the deficiency memo remains pending ?
- Whether combined show cause notice can be issued covering multiple financial years ?
- Whether tax can be recovered by Department without prior intimation in Form DRC-01D ?
- Whether a penalty equal to 200% of the tax amount can be demanded in case of detention or seizure of goods ?
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