Case Law Details
In re Rajesh Rama Varma (GST AAAR Tamilnadu)
Appellant has been contracted by M/s Doyen Systems Private Ltd to provide professional and consultancy services to be carried out through them and that, he had rendered software support services to the client of M/s Doyen Systems Private Ltd, IRM in the United States of America and is paid in rupee equivalent of US Dollars on hourly basis at agreed rates by Doyen systems after approval of invoice and client time sheet. The Point of contention is that the appellant claims that the skill-based services provided by him is ultimately consumed by the client of Doyen Systems for which he is paid by Doyen Systems who have contracted him is an export of services provided by the appellant while the Original authority has held that the appellant has a contract only with Doyen systems who pays the consideration to him, after verifying the time sheet of the appellant with their client and the services provided by the appellant are intra-state supply to Doyen Systems taxable to CGST/SGST.
We find that the contention is based on his following averments:-
> GST is a destination based consumption tax. The skill-based service supplied by him is consumed by the client of Doyen Systems and therefore the recipient of his services are the client of Doyen Systems who is based outside India
> Section 2(93)(a) of the GST Act which defines recipient has two parts to it, ‘Supply of Goods or Services’ and ‘Payable of Consideration’; ‘Consideration’ envisaged in the GST Act is wide enough to include payment obligation which can be satisfied by any other person other than the actual recipient.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
