Marketing Service provided to Overseas Sister concern will constitute supply of Intermediary Services: AAR

The Maharashtra Authority for Advance Ruling (AAR Maharashtra), in the matter of M/s. Gulf Turbo Solutions LLP has ruled out that Marketing Service provided to Overseas Sister concern will constitute supply of Intermediary Services.

Gulf Turbo Solutions LLP (hereinafter referred as GTSLLP), the applicant, a LLP incorporated in India, is in the business of service and repairs of various types of Turbochargers and supplying spare parts required for Turbochargers and ship spares.

Gulf Turbo Repairs and Services FZC (hereinafter referred as GTRS) is the company incorporated/ registered in Sharjah, UAE & is also in the business of service & repairs of various type of Turbocharges.

The Question was

1. Whether Marketing Services agreed to be provided by the Applicant under Marketing Services Agreement agreed to enter into will constitute supply of ‘ Support Services’ falling under HSN Code 9985 or as ‘Intermediary Services’ classifiable under HSN Code 9961/9962?

2. Whether Marketing Services provided by the applicant is an export of services as defined under Section 2(6) of the Integrated Goods and Services Tax Act 2017?

Answer: The impugned service agreed to be provided by the Applicant will constitute supply of ‘Intermediary Services’ classifiable under HSN Code 9961/9962.

As the place of supply of intermediary services to GTRS is location of applicant in India and consequently condition (iii) of export of services as per Section 2(6) of IGST Act is not satisfied. Therefore, the Question No. 2 asked by the applicant is to be answered in the negative.

The Ruling was made by Rajiv Margo (Member), R. Ramnani (Member).

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