In re M/s Esprit India Private Limited (GST AAAR Haryana)
Taxability of services provided by Esprit India to Its associate concern in Hong Kong EDCFE under GST regime. AAAR upheld AAR order and held that The services provided by Esprit India to its associate concern in Hong Kong EDCFE are taxable supplies
Also Read AAR Ruling- AAR cannot decide on Questions of Zero rated supply / GST Refund
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, HARYANA
Order under Section 101 of the Central Goods and Services Tax Act, 2017/the Haryana Goods and Services Tax Act, 2017.
The present appeal has been filed under Section 100 (1) of the Central Goods and Services Tax Act, 2017/the Haryana Goods and Services Tax Act, 2017 [hereinafter referred to as “the CGST Act and HGST Act respectively”] by M/s Esprit India Private Limited [hereinafter referred to as the “Appellant”] against the Advance Ruling No. HAR/HAAR/R/2018-19/6, dated 11.04.2018.
A copy of order dated 11.04.2018 of the Advance Ruling Authority was received by the appellant on 12.07.2018 and the appeal has been filed on 13.08.2018 which is in time. (11-12.08.18 being holidays)
1. The appellant namely M/s Esprit India Pvt. Ltd. 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 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 Pvt. Ltd. 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 Pvt. Ltd. in terms of which Esprit India Pvt. Ltd. has undertaken to provide various sourcing support services to EDCFE in relation to performance of the obligations under EDCFE’s contract with Esprit Germany.
3. Under the agreement, Esprit India Pvt. Ltd. is appointed by EDCFE to provide services to EDCFE in relation to goods and merchandise including wearing apparel, shoes & accessories and fabric. A brief description of the functions/responsibilities of EDCFE and Esprit Germany and Esprit India Pvt. Ltd. is listed below:
