Export of service under lut

548 views 2 replies

Hi

An Indian company is agent of a foreign based company and selling their textile machines in India.The machines are invoiced directly by foreign company to customers in USD and customers import the machines after paying custom duty(IGST) and Indian company got commission from that foreign based company in US Dollars.

"For getting commission, Indian company raise a commission invoice to foreign based company but that being a Indian company can not charge any GST from foreign company in that invoice. Foreign company is not subject to Indian taxation laws".

In this case, Indian company provide agency service to that foreign Company. i.e. Export of service. So, Indian Company raise invoice using LUT and without charging IGST.

Please let me confirm Indian company need to pay IGST?

Replies (2)
The commission service falls under Intermediary Services for which place of supply is place of service provider i.e., Place of Indian Company i.e., India and hence place of supply is India. One of the condition for export of service is place of supply should be India and hence the above wouldnt fall under export of service and hence GST is applicable.

Thank you Sir

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details
Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 July 2026
Articleship

Jawahar and Associates Chartered Accountants

Hyderabad

CA Inter

View Details
Company
05 July 2026
Financial Controller

NovumLake Partners

Mumbai

CA

View Details