Reply by - ramesh bhatia , Mar 21 2018 11:11PM
“Export
of Services” as defined under Section 2 (6) of IGST Act 2017 means the supply
of any service when –
1.the supplier of service is
located in India;
2.the recipient of service is
located outside India;
3.the place of supply of service
is outside India;
4.the payment for such service
has been received by the supplier of service in convertible foreign exchange;
and
5.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;
6.Explanation 1.— For the
purposes of this Act where a person has—
an establishment in India and any
other establishment outside India; an establishment in a State or Union
territory and any other establishment outside that State; or an establishment
in a State or Union territory and any other establishment being a business
vertical registered within that State or Union territory then such
establishments shall be treated as establishments of distinct persons.
Export of Services –
Multiple Conditions
If all tests satisfied then eligible for zero rating
If all tests not satisfied
• Inter-state
as per the deeming fiction of section 7(5) of the IGST Act
• Not Eligible for
Zero Rating
• Therefore taxable
as IGST
Examples
• Services realised
in Indian currency
• Services not
realised at all
• Remittances from
branches --- Is it taxable at all in first place?
etc