27 November 2017
Mr X develops mobile Apps and places in play store. Depending upon the number of visits to the app , the google and face book shares the advertisement income and sends in foreign currency that will be credited to the app developer bank account in Indian currency. What is the amount the developer is getting will be informed in the last week of current month and the same will be transferred to developer bank account in the last week of next month. The developer cannot raise any invoice as he do not know what is the revenue he can get on one particular app. One of the definition of export of service is " place of service is outside India". The developer is placing the Mobile app in the face book and in play store in India. Does it amounts to supply of service outside India? The developer pays advertisement charges to Google India (P) Ltd like any other advertiser on his selected mobile apps with intention to attract other advertisers so that revenue generation will increase. Today, the developer has applied for LUT. Is there any liability on the part of developer to pay IGST on the revenue received in foreign currency from Google and Face book for the previous three months of July to October 2017? Can any one please advise me on this issue?
28 November 2017
The services provided is essentially online information ans database access or retrieval services. Whether the service is export of service or not would depend on whether the place of provision is in or outside India. For determining the place of provision of such service please refer to Section 13(12) of the IGST Act.
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