The applicant entered into an agreement with a foreign company to sell its machinery. It received commission income from the company in foreign currency.
It files an application for advance ruling to determine whether services provided by it were in the nature of the services of commission agents or not.
The Authority for Advance Ruling observed that services provided by the applicant were services of commission agents or commodity brokers who negotiate between buyers and sellers as a facilitator for the supply of goods for which they are paid a fee or commission. Such service may also be called "intermediate services".
Furthermore, since the recipient of service in the immediate case was located outside India, place of delivery of services shall be the location of the provider of services. Therefore, supply of services would be considered as intra-state supply of services and would be liable to CGST and SGST at rate of 9% each.
Head Office:- Plot No 6A, IInd Floor, Opp. Max Hospital, Hasanpur, Patparganj, Delhi-110092
Branch Office:- IInd Floor, SCO-20, Huda Shopping Complex, Saraswati Vihar, Near Sahara Mall, MG Road Metro Station, Gurugram, Haryana-122002