Case Law Details
In re Luksha Consulting Private Limited (GST AAR Tamilnadu)
The case of “In re Luksha Consulting Private Limited” throws light on the implications of GST & IGST for monitoring software contracts in the UK by an India-based company. This article delves deep into the ruling, analyzing its various facets and implications.
Determining the Nature of the Service: From the facts presented, it’s evident that Luksha Consulting offers IT-enabled services to an offshore company. The services, prima facie, seem to align with the criteria for “export of services”.
The Definition of Export of Services: According to section 2(6) of the IGST Act, 2017, “export of services” is characterized by five conditions: supplier’s location in India, recipient’s location outside India, the place of supply outside India, payment in convertible foreign exchange, and distinctness of the supplier and recipient.
Hon’ble High Court of Kerala’s Observations: The court observed that Advance Ruling Authorities should also consider “determination of liability to pay tax on any goods or services or both.” The aim is to provide clarity, especially for entities with foreign investments in India, ensuring they can operate effectively.
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