Analysing the ‘Place of Supply Provisions’ for classifying a transaction as ‘Export of Service’ under GST regime
Facts of the Case:
ABC Pvt. Ltd. registered in state of Maharashtra imported goods from a UK based company (not having Permanent Establishment in India). Also, some services are to be provided by the UK based company along with the imported goods in India. For the services, UK based company entered in to a contract with XYZ Pvt. Ltd. registered in Delhi. For providing the services, XYZ Pvt. Ltd. will get the consideration in convertible foreign exchange.
XYZ Pvt. Ltd. considered this transaction as “export of service” and made supply without payment of taxes.
Source Taxguru
