- Tamil Nadu AAR held that 15% commission paid to a Swiss-resident director for marketing and export-order sourcing is an import of services, so GST is payable in India under reverse charge.
- The AAR said the director’s location abroad, the Indian recipient, and the place of supply in India satisfy the IGST Act’s import-of-services test.
- It ruled that the commission is payment for services, not just a return on ownership, and is taxable under Notification No. 10/2017-Integrated Tax (Rate).
- Commission paid to foreign marketing agents for procuring export orders was held not taxable as GST under reverse charge because they were treated as intermediaries.
- Foreign clearing and forwarding agents were held to provide services on their own account, so their charges were treated as imported services and subject to GST under reverse charge.
Source: a2ztaxcorp.net
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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