In re Rajesh Rama Varma (GST AAR Tamilnadu)
In the instant case, the applicant provides IT software related consulting services in the area of Oracle ERP w.r.t Oracle Financials to Doyen for a consultancy fee laid down in the consultancy agreement. Therefore, the said activity satisfies the conditions of Section 7(1)(a) and is a supply under GST. As per Para 5 of Schedule II read with Section 7(1A), this supply is a supply of services. Therefore, the applicant is liable to pay GST at appropriate rates on the supply of consultancy services to Doyen.
In respect of the questions whether, such supply of services is ‘export of services’ . ‘zero-rated supply’ and eligibility of refund, this authority’ cannot answer the questions as they are not covered in Section 97(2) of the CGST/TNGST Act.
Read AAAR Order – Person liable to pay consideration for supply of services is ‘Recipient’ of such supply
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, TAMILNADU
Note : Any Appeal against the Advance Ruling order shall be filed before the Tamil Nadu State Appellate Authority for Advance Ruling, Chennai under Sub-section (1) of Section 100 of CGST ACT/TNGST Act 2017 within 30 days from the date on which the ruling sought to be appealed against is communicated.
At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act.
Shri. Rajesh Rama Varma, Tower-5, 403 Sky Dugar, Rajankuppam Road, Chennai, TamilNadu 600 095. (hereinafter referred to as ‘Applicant’) is a sole proprietory concern registered under GST Act with GSTIN: 33ABAPV7712P1Z7. The Applicant has preferred an application seeking Advance Ruling on the following Question:
a. Whether the services provided by the applicant to the foreign client through the Principal shall be treated as export of services as the final services claimed by the Principal is in the nature of export of services.
b. If the services are treated as export of services if so whether he is eligible to claim the taxes paid towards such export of services as refund.
c. Whether the payment of fees received by him in INR from the Principal shall be treated as Export Remittance as the Principal is receiving the export proceeds in his account based on which the payment is made to him in INR keeping in view the various judgments in the matter cited above.
d. Whether he can raise invoices with IGST taxes instead of CGST +SGST going forward for claiming refund.
e. Any consequential relief or directions if any as deemed fit.
The Applicant has submitted the copy of application in Form GST ARA – 01 and submitted a copy of Challan evidencing payment of application fees of Rs.5,000/- each under Sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017.
2.1 The applicant has stated that he is engaged in the business of providing IT software related consulting services in the area of Oracle ERP w.r.t Oracle Financials. The major services provided by him broadly include implementation, enhancement, support services and any other services that fall within the ambit of the Oracle Financials sphere. The services provided by him currently are covered under the SAC (Service Accounting Code) 998313. These services are being provided by him to both Indian and Foreign clients requesting the services. In Jan 2019, he entered into a contract with a GST registered IT Company in India providing similar Oracle services(hereinafter referred to as ‘Principal’). As part of the Contract his role was that of a Consultant to provide support services to the Oracle ERP owned by the US client based out of Boston. The original contract was between the Principal and the US client and a part of the service was contracted to him. As per the terms of the contract, the consultancy fee for his services was decided to be billed on an hourly basis in USD of $33.90 per/hr. The fee was decided to be paid in equivalent INR based on the conversion rate of INR/USD on the average prevailing rate of the last 3 month. The GST taxes would be charged separately while raising the invoice by him on the Principal. The contract is currently in force and valid till December 2021.
2.2 As part of the service obligation on the contract he was required to undertake the following activities on a monthly basis.
