Export of services
This query is : Resolved
13 December 2018
A Indian company tie up with one USA company in web series productions. Received payment for such service has been received by the supplier of service in convertible foreign exchange.Its a Zero rate supply.
USA company have a Branch in Mumbai. My queries is whether this transaction is treated as Export or not. And Indian Company will liable to pay tax on Invoice price or total cost of production. Place of supply is in india.
Please advice the same. Currently Indian Company not charge any IGST to USA company and file their GSTR1.
USA company have a Branch in Mumbai. My queries is whether this transaction is treated as Export or not. And Indian Company will liable to pay tax on Invoice price or total cost of production. Place of supply is in india.
Please advice the same. Currently Indian Company not charge any IGST to USA company and file their GSTR1.
14 December 2018
Dear Shrikant, for a supply to qualify as export service, supply has to fulfill all 5 conditions.
1. Supplier is situated in India
2. Recipient is located outside India.
3. Place of supply of service is outside India, Here you are saying Place of supply is in India. if Place of supply is in India then this supply can not qualify as export service.
Hence in my view you first have to establish Place of supply, if it is outside India then only proceed further.
1. Supplier is situated in India
2. Recipient is located outside India.
3. Place of supply of service is outside India, Here you are saying Place of supply is in India. if Place of supply is in India then this supply can not qualify as export service.
Hence in my view you first have to establish Place of supply, if it is outside India then only proceed further.
14 December 2018
According to Section 12 of IGST Act, The place of supply of services, shall normally be:
a. Made to a registered person shall be the location of such person,
b. Made to any other person,
i. the location of the recipient where the address on record exists
ii. the location of the supplier of service in other case.
So if you are producing a web series in India with a tie up with a USA company and such company also have a branch in Mumbai, the transaction cannot be export of service. It has to be a supply of service in India only and chargeable to GST accordingly.
a. Made to a registered person shall be the location of such person,
b. Made to any other person,
i. the location of the recipient where the address on record exists
ii. the location of the supplier of service in other case.
So if you are producing a web series in India with a tie up with a USA company and such company also have a branch in Mumbai, the transaction cannot be export of service. It has to be a supply of service in India only and chargeable to GST accordingly.
14 December 2018
@Vijaykumar....Thanks for your reply. Place of Supply and Shoot in India.
@ Mayur Thanks very much.
@ Mayur Thanks very much.
14 December 2018
Dear Shrikant,
In my view it does not matter whether US co has a branch in India. It also does not matter where the shooting is taking place. what Matters is place of supply. If the services are consumed by US co. in USA means web series is for US audience and contract is strictly with US Co. without any implication of its Indian branch in India, then It is export of Service and Co is doing right and fulfilling all the conditions to be qualified as export of service.
In my view it does not matter whether US co has a branch in India. It also does not matter where the shooting is taking place. what Matters is place of supply. If the services are consumed by US co. in USA means web series is for US audience and contract is strictly with US Co. without any implication of its Indian branch in India, then It is export of Service and Co is doing right and fulfilling all the conditions to be qualified as export of service.
14 December 2018
Dear Vijay...Web series for Indian Audience ...Place of Supply as well as delivery of final copy is in India. Money recd in convertible foreign exchange but they not included IGST in bill. In GSTR 1 they also shown as Export but IGST column is NIL. I have one case of Advance Ruling please refer it VSERVGLOBAL PVT :LTD v/s GST Advance Ruling Authority Maharashtra Mumbai.
14 December 2018
Web series in Hindi Language and Produce in India.
14 December 2018
Dear Shrikant,
If US co. is paying FX then US Co. is recipient of Service and located outside India hence place of supply outside India as per Section 13 (1) of IGST ACT and it qualifies as export of service. If your client company and US co is dealing on Principal to Principal basis, It is definitely export of service.
If your client company is dealing or providing service through Indian Branch of US co. then definitely it is not export of service as location of service receiver (Indian branch in Mumbai) is not outside India and it is not export of service.
Main test is to go through Contract and decide.
If it is not export of service then revise the Invoices in the next due GSTR 1 and pay tax through next due GSTR 3B with interest and relax.
If US co. is paying FX then US Co. is recipient of Service and located outside India hence place of supply outside India as per Section 13 (1) of IGST ACT and it qualifies as export of service. If your client company and US co is dealing on Principal to Principal basis, It is definitely export of service.
If your client company is dealing or providing service through Indian Branch of US co. then definitely it is not export of service as location of service receiver (Indian branch in Mumbai) is not outside India and it is not export of service.
Main test is to go through Contract and decide.
If it is not export of service then revise the Invoices in the next due GSTR 1 and pay tax through next due GSTR 3B with interest and relax.
14 December 2018
thank u so much.....
11 March 2019
As per my previous query of Export of Service, TDS has been deducted by Indian company on amount received in convertible foreign exchange on indian rupees. TAN number is based on Indian Company So How it can be treated as Export.
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