There are three parties involved in this transaction viz. (1) USA , (2) INDIA , (3) BANGLADESH. For the sake of brevity the name of these parties is also their respective location of principal place of business. USA provides cloud based "software as a service" (SAAS) to its customers. On the payment of requisite fees USA provides the login credentials to subscribe and use the SAAS that it provides. INDIA has a client called BANGLADESH. INDIA procures the SAAS for BANGLADESH from USA. The transaction is routed in such a way that USA provides the login credentials directly to BANGLADESH on the behest of INDIA. USA bills the requisite amount to INDIA but directly provides the login credentials to subscribe to his SAAS to BANGLADESH (like the "bill to-ship to" model of providing goods).
notification no. 10/2017 IGST(Rate) provides for RCM on services provided by persons resident in non-taxable territory to person resident in taxable territory.
Whether or not this transaction comes within "import of services"
please give your answers with reference to the following sections of the IGST act.
sec 2(11) import of service
sec 2(14) location of the recipient of services
sec 2(15) location of the supplier of services
sec 2(17) OIDAR
sec 13 Place of supply of services where location of supplier or location of recipient is outside India.
NO IT CANNOT BE IMPORT SERVICES:
1. As per Defination of Import Services in term of Section 2(11) IGST Act , the place of supply of services should be in India & in your case which is in Bangladesh.
2.As per the definition of Location of the Recepient in term of Section 2(16) IGST Act Where the supply is reced at place of Business. , but the supply is reced at Bangladesh which is not your place of business registered.
AND as per Section 13(12) Of IGST Act , the POS is the location of Recepient. But actually the Services is being provided in Bangladesh. So it does not cover under Import Services.
Moreover , in case of Services the Bill to Ship module cannot be applicable.
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