Question 33:
If a service provider in India is providing commission service for sale of products of a foreign party in India (working as a mediator or an intermediary) the commission is received in foreign currency. Will it be export of service as being provided to a foreign client and consideration received in foreign currency?  

Answer 
 The export of service is defined in Section 2 Of the Igst Act as follow  
(6) 'export of services' means the supply of any service when,''
(i) the supplier of service is located in India;
(ii) the recipient of service is located outside India;
      (iii) the place of supply of service is outside India;
(iv) the payment for such service has been received by the supplier of service in convertible foreign exchange; and
(v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in section 8;

 
To be export all the conditions given in Section 2(6) are to be fulfilled Now coming to the place of supply as per section 13(8)(b) The place of supply is India So the condition given in clause iii of above subsection is not fulfilled Accordingly it is not export 

 

(Reply dt.18/01/2018)