In re Esprit India Private Limited (GST AAR Haryana)
i. Taxability of services provided by Esprit India to its associate concern in Hong Kong EDCFE under GST regime.
The services provided by Esprit India to its associate concern in Hong Kong EDCFE are taxable supplies, as discussed in para 6 above
ii. Whether the services provided by Esprit India are covered under Export of Services having Zero rated taxability.
The below stated services being taxable supplies, the question as to whether they qualify as “export of services” and accordingly “zero rated supply”, is out of jurisdiction of this authority, in view above discussions in para 7.
iii. Whether Esprit India is eligible for seeking refund of GST for the taxes paid on input services or goods or both.
The same proposition, as discussed in para 9.2 above, applies to the question as to whether Esprit India is eligible for seeking refund of GST for the taxes paid on input services or goods, due to lack of jurisdiction.
Also Read AAAR Ruling- GST payable on services provided by Esprit India to its associate concern in Hong Kong
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, HARYANA
1. The applicant namely M/s Esprit India is a subsidiary of M/s Esprit De Corp. (Far East) Limited, Hong Kong (EDCFE) which in turn is a fellow subsidiary of M/s Esprit Europe Service GmbH, Germany (‘Esprit Germany’). EDCFE is a limited company incorporated in Hong Kong, acts as sourcing service provider for Esprit Germany, EDCFE assists Esprit Germany in sourcing (on a worldwide basis)) of goods which includes wearing apparel, shoe & accessories and fabric.
2. EDCFE has engaged Esprit India as a sub-contractor to provide sourcing services for the goods on a non-exclusive basis in India for Esprit Germany. Pursuant to the said arrangement, EDCFE has entered into an agreement dated 18.07.2016 with Esprit India in terms of which Esprit India has undertaken to provide various sourcing support services to EDCFE in relation to performance of the obligations under its contract with Esprit Germany.
3. Under the agreement, Esprit India Is appointed by EDCFE to provide services to EDCFE in relation to goods and merchandise including wearing appreal, shoes & accessories and fabric. A brief description of the functions/responsibilities of EDCFE and Esprit Germany and Esprit India is listed below:
